Dangote Refinery Nears Full Operations, Set to Begin Petrol Production by Mid-September

The Dangote Refinery, boasting a capacity of 650,000 barrels per day, is currently in the process of conducting test runs for producing Premium Motor Spirit (PMS), commonly known as petrol. Full-scale operations are expected to commence by mid-September.

According to a report from industry analyst IIR Energy, the $20 billion refinery, developed by Aliko Dangote, has so far primarily produced diesel and other distillate fuels.

The refinery had initially projected that petrol production would begin in May, with deliveries expected in July. However, these timelines have been adjusted, and there is potential for further delays, as noted by IIR in a client briefing.

Once fully operational, the refinery is expected to significantly impact fuel trade between Europe and Africa, reducing Nigeria’s reliance on imported refined products.

Earlier this month, a committee set up by the Federal Government to oversee the sale of crude oil to local refineries in naira reached an agreement with Dangote Petroleum Refinery on the commencement of petrol distribution in September.

Additionally, the report highlighted that the Federal Government has announced plans to begin selling crude oil to the Dangote Refinery and other domestic refineries starting October 1, 2024.

This announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Implementation Committee in Abuja.

During the same meeting, Dr. Zacch Adedeji, the Executive Chairman of the Federal Inland Revenue Service, and the Chairman of the Technical Sub-Committee, stated that “The first PMS delivery from Dangote is anticipated next month under the current agreements.”