“We Are Booking For US Market”: Dangote Refinery Announces Date to Export Diesel

“We Are Booking For US Market”: Dangote Refinery Announces Date to Export Diesel

  • By June, Dangote's refinery will begin exporting diesel that complies with European regulations
  • The refinery is authorised to start up its catalytic cracker for residual fluid, according to a source
  • Diesel with more than 600 parts per million of sulfur can be sold in the local market following an NMDPRA waiver

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

Dangote Refinery, which has a capacity of 650,000 barrels per day, will start exporting diesel that meets European standards by June.

Dangote refinery announces date to export diesel
Dangote CEO Aliko Dangote reaffirmed the scheduled June commencement for gasoline. Photo Credit: Dangote refinery
Source: UGC

Devakumar Edwin, the refinery's vice president for oil and gas, revealed the initiative in Lagos.

He said:

“We expect before the end of next month we’ll also have gasoline in the market, and we’ll also have Euro V diesel for export, that is below 10 ppm,’ Edwin said this week at a Society of Petroleum Engineers event in Lagos.

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Dangote reaffirms commitment

On May 17, Dangote CEO Aliko Dangote reaffirmed the scheduled June commencement for gasoline, according to a Leadership report.

Dangote began operating its crude distillation unit in January and was given permission in March to begin operating a mild hydrocracker in conjunction with its desulphurisation units.

According to a source at Nigeria's downstream regulator, NMDPRA, the refinery has been given the go-ahead to initiate its residual fluid catalytic cracker.

The refinery already commenced diesel sales

Dangote began exporting naphtha in March, low-sulfur straight-run fuel oil (LSSR) in May, and domestic diesel and jet fuel sales in April.

According to an NMDPRA waiver, it is permitted to sell diesel with sulphur levels beyond 600 ppm in the local market.

A source at Nigeria's downstream regulator, NMDPRA, said the refinery had been given the go-ahead to initiate its residual fluid catalytic cracker.

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Dangote began exporting naphtha in March, low-sulfur straight-run fuel oil (LSSR) in May, and domestic diesel and jet fuel sales in April.

It is expected that Dangote will be more than able to provide Nigeria's domestic gasoline demand at full capacity. However, a trader stated that given the volume of cargo that must be supplied to the nation, Petroleum production is unlikely to begin next month.

The refinery is still exporting naphtha, which is essential for blending finished-grade gasoline. According to Kpler, 80,000t of naphtha is scheduled to be loaded on May 31.

Edwin hinted at a slowing of spot sales.

“We had a meeting to see, probably, how we can slow down our sales because we’ve already made quite a few forward bookings,”
“Export, for example, aviation/jet, the last vessel went to the Caribbean islands. The next vessel, we are booking for US market.”

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Nigerian company releases locations of its filling stations to buy fuel priced at N200

In a partnership that might see the French business take refined goods for its African network of 4,800 retail fuel stations, including more than 540 in Nigeria, Dangote recently added TotalEnergies as a buyer.

According to an Argus source, TotalEnergies has an agreement to deliver two crude cargoes per month or approximately 2 million barrels.

Based on the refinery's slate thus far and TotalEnergies' equity in Nigerian crude, the indications point to one cargo being the very light Amenam blend and the other being Bonny Light.

Tinubu reacts as Dangote reviews price of diesel

Legit.ng reported that President Bola Ahmed Tinubu had commended Dangote Oil and Gas Limited for slashing the price of Automotive Gas Oil (AGO), also known as diesel, from N1200 to N1000.

The reduction was effected after the initial reduction from N1,650 to N1200 about three months ago.

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Tinubu said the price review, which represents a 60% drop, will impact the prices of sundry goods and services.

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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