Report Highlights Expected Timeline for Dangote Refinery to Attain Full Operational Capacity

• A new report has stated that the Dangote Refinery will reach its full capacity by the second quarter of 2024
• According to the outlook, this year will witness a modest increase of 600,000 bpd added to refining capacity
• It also predicted that the plant will be successfully ramped up to a full capacity of 650,000bp by the end of the second quarter

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

A new report has projected that the Dangote Refinery may start producing at full capacity of 650,000 barrels per day by the second quarter of 2024.

This is according to Wood Makenzie, in a new outlook titled, ‘Oil and Chemicals: Five Things to Watch in 2024’

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The new report seen by The Guardian showed that a modest increase of 600,000 bpd would be added to refining capacity this year.

According to the outlook, the successful ramp-up of Middle East capacity and high utilisation rates would accompany the growth.

Focusing on Dangote Refinery as a major game changer, the report emphasised that the plant will be successfully ramped up to full capacity of 650,000 bpd by the end of the second quarter of this year.

Senior Vice President of Research at Wood Mackenzie, Alan Gelder, said:

“As OPEC+ production returns the refinery yield of middle distillates, such as jet and diesel/gasoil, will rise from a heavier global crude slate.”

Gelder stated that reducing interest rates and rebalancing the GDP is essential to capturing demand growth.

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According to the research agency, China will account for more than 25% of the projected crude oil demand growth of two million barrels per day in 2024.

The research claims that in addition to China, three growing Asian markets—Indonesia, Vietnam, and Thailand—and the US are additional important areas for growth.

Gelder said:

“Much of the growth (in oil demand) will be coming in the second half of the year. this will be fuelled by improving economic growth and lower interest rates.”

In an earlier report by Legit.ng, analysts also predicted when Dangote Refinery will commence full-scale production.

Commenting on the development, Olumide Adesina, a financial analyst had told Legit.ng,

"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."

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Legit.ng also reported that Dangote Petroleum Refinery received its sixth batch of one million barrels of crude from the Nigeria National Petroleum Company Limited (NNPC Ltd) on Monday, January 8, 2024.

The largest refinery in Africa is also getting set to receive four crude oil cargoes (four million barrels) under its February programme from the state oil company.

According to Reuters, the expected cargo will improve the total supply to about one billion barrels and adequately allow for a test run of its operations.

Source: Legit.ng