After Receiving its First Supply, Dangote Refinery Announces Arrival Date For Next Cargo

After Receiving its First Supply, Dangote Refinery Announces Arrival Date For Next Cargo

  • Dangote Refinery recently confirmed the receipt of its first crude oil from STASCO
  • It also revealed the expected delivery date for its next cargo.
  • The company also stated that it would begin with the production of diesel, aviation fuel, and LPG first

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

Dangote Petroleum Refinery and Petrochemicals plant has confirmed receiving one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO).

Dangote Refinery announces arrival date for next cargoes
Dangote said the focus over the coming months is to ramp up the refinery to its full capacity. Photo Credit: Dangote
Source: UGC

According to a statement by the company, the one million barrels represent the first phase of the 6 million barrels of crude oil to Africa's largest refinery and will sustain the initial 350,000 barrels per day to be processed by the facility.

The next cargo to be delivered soon

Legit.ng had reported that Nigeria's state oil company, the Nigerian National Petroleum Company Limited (NNPCL), signed a new deal to supply crude oil to Africa's biggest refinery.

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It was anticipated that the refinery would receive six crude oil cargoes in December for a test run.

The company announced that the NNPC would supply the next four cargoes in two to three weeks. It added that ExxonMobil would supply the final of the six cargoes.

It reported that the supply would facilitate the refinery's running and kick-start the production of diesel, aviation fuel, and LPG before subsequently progressing to Premium Motor Spirit (PMS) production.

The company stated that the recent development would be crucial in easing Nigeria's and the West African countries' problems with fuel supply.

Aliko Dangote, President of Dangote Group, expressed delight at the milestone.

He said the development marked an important achievement for Nigeria as it demonstrated its ability to develop and deliver large capital projects.

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He added:

“Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”

Osagie Okunbor, Country Chairman of Shell Companies in Nigeria, stated:

“We welcome the startup of a refinery designed to produce gasoline, diesel, and low-sulfur fuels for Nigeria and across West Africa and are happy to be enabling it.”

Commending the recent milestone, Olumide Adesina, a financial analyst, noted,

"It strengthens the narrative of Africa's largest economy getting closer to achieving its energy security and reducing the demand for FX since petrol was the country's most imported item in the third quarter."

Notably, some analysts had earlier predicted it would take months before Dangote Refinery finally commences full-scale production.

Dangote Refinery to sell petrol to Nigeria in dollars, not naira, executive director gives reasons

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Legit.ng also reported that Dangote Refinery announced plans to commence production after several delays since it was commissioned in May 2023.

Devakumar Edwin, the Group Executive of Dangote Refinery, disclosed that the facility would begin refining diesel and jet fuel by October 2023, while petrol would commence by November 2023.

The plan, however, did not materialise.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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