The Dangote Refinery project was officially inaugurated and commissioned in May 2023.
Dangote Industries Limited’s Vice President of Oil and Gas,
Devakumar Edwin, has confirmed that the Dangote Refinery will begin producing
Premium Motor Spirit (PMS), commonly known as petrol, this month.
During a visit to the Dangote Refinery in Ibeju-Lekki,
Lagos, as part of their sovereign credit ratings assessment of Nigeria,
officials from S&P Global, a prominent international financial analytics
corporation, were informed by Edwin that the company will commence petrol
production this month (July), as previously announced.
In his opinion, this initiative will leverage Africa’s
substantial crude oil reserves to produce refined products domestically.
Furthermore, the company’s objective is to stimulate a positive cycle of
industrial growth, employment generation, and economic prosperity.
Edwin also mentioned that the products from the $20 billion
facility are of superior quality and adhere to international standards. He
emphasized that the facility has the capacity to satisfy the entire domestic
demand for petrol, diesel, kerosene, and jet fuel, with additional surplus
available for export.
S&P Global expressed Its belief that the 650,000 barrels
per day refinery has the potential to alleviate Nigeria’s foreign exchange
challenges, reduce pressure on the naira, and contribute to the country’s
economic growth.
Representatives from the Federal Ministry of Finance
accompanied the ratings agency’s team during their visit.
Director and Lead Analyst of Sovereign and International
Public Finance Ratings at S&P Global Ratings, Ravi Bhatia, emphasized the
transformative impact of the Dangote Refinery on Nigeria’s petroleum industry.
During an extensive four-hour tour of the facility, Bhatia expressed his
admiration for its impressive scale and capacity to process 650,000 barrels per
day, making it the largest single-train refinery complex globally. The rapid construction
of the refinery was also highlighted as a remarkable achievement.
“Nigeria, a substantial exporter of crude oil, faces
challenges in importing refined fuels. This presents a market opportunity for
domestic crude refining, potentially generating cost savings and preserving
foreign exchange reserves. Such a development would have a positive impact on
the economy in the medium term. Based on our assessment, the outlook appears
favorable.”
The S&P team expressed their appreciation to the
President of Dangote Industries Limited, Aliko Dangote, for his commitment to
integrating advanced technologies and implementing rigorous quality control
measures, including the establishment of a cutting-edge Central Control Unit
that ensures seamless automation of operations.
Other members of the team of the international ratings
agency include the Associate Director, Sovereign Ratings, Maxmillian McGraw;
Director, Corporate Ratings, Omegu Collocott; Senior Analyst, Bank Ratings,
Charlotte Masvongo, and Director, Financial Services, Samira Mensah.
The refinery, which currently has a capacity of 350,000
barrels per day, is expected to increase its capacity to at least 500,000
barrels per day by July/August. This expansion will enable the refinery to
commence the refining of petrol and ultra-low sulfur diesel.
The refinery, meticulously engineered to handle a diverse
spectrum of crude oils, adheres to the stringent Euro V specifications.
Furthermore, it is meticulously designed to comply with the stringent emission
norms established by the US EPA, the European Union (EU), the Department of
Petroleum Resources (DPR), and the African Refiners and Distribution
Association (ARDA).
It Is noteworthy that while the majority of refineries were
constructed by international companies, it is a source of pride that a Nigerian
company successfully designed and constructed the world’s largest single-train
refinery complex, encompassing the engineering, procurement, and acting as the
construction (EPC) contractor.
The Dangote refinery boasts a self-sufficient marine
facility, capable of accommodating the largest vessels in the world.
“The refinery can produce the best quality products in the
world, Euro V grade. It is one of the energy-efficient refineries and it is
highly environmentally friendly. It is sophisticated with a high level of
automation. The largest single train refinery in the world is 100 per cent
designed, engineered, and constructed by a Nigerian company as EPC contractor,”
he said.
Nigeria, a prominent global oil producer, exports its crude
oil for refining and subsequently imports refined products due to operational
refinery constraints. Nigeria imports approximately 50 million liters of petrol
daily to satisfy domestic demand.
As per the Foreign Trade Statistics for the Fourth Quarter
of 2023 released by the National Bureau of Statistics (NBS), Nigeria’s
petroleum product imports, including petrol, amounted to approximately ₦12
trillion in 2023. This represents an increase of 18.68% compared to the ₦10
trillion spent on fuel imports in the previous year, 2022.