- Dangote refinery will begin the production of refined petrol and other products by June this year
- The company's representatives stated that the refinery would start with the production of 500,000 barrels of refined products
- President Muhammadu Buhari will commission the facility on May 22, 2023
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A recent report says that the Dangote Refinery is expecting the arrival of its first crude batch in June this year.
The refinery's representative stated that they expect to start processing the initial batch, which consists of 500,000 barrels, before increasing production gradually to 65,000 of the refinery's installed capacity by 2024.
Dangote Refinery to boost local petrol supply
The facility is to be commissioned by President Muhammadu Buhari on May 22, 2023.
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The report stresses that a vast portion of the crude oil would be sourced locally from Nigeria.
According to the report, the Dangote Refinery will manufacture Euro 5-compliant petrol, diesel, and polypropylene.
Data reveals that petrol production is projected to rise from almost zero to 249,000 barrels per day by 2026 and will exceed 300,000 barrels daily by 2033.
Also, petrol imports will decline by over half to 154 000 barrels in 2023 to 211,000 per barrel per day in 2026, the report said.
But Nigeria's burgeoning population might also spike imports to meet local needs in the coming decades as local production would be surpassed by 2042.
In 2024, Nigeria is expected to export refined petrol for the first time, with production expected to spike from 3,500 barrels per day in 2023 to 211,000 barrels per day in 2027.
Petrol import to drop due to Dangote Refinery
Analysts say Nigeria's crude production is expected to remain stable at approximately 1.3 million barrels per day over the next decade.
But Dangote Refinery is expected to substantially impact oil exports, indicating that in 2023, Nigeria will produce 1.46 million barrels of crude oil daily and export 1.45 million barrels daily.
By 2027, there would be a slight decline in production to 1.30 million barrels per day which would be attributed to the influence of the Dangote Refinery.
Dangote had told the Economist in a recent interview that the refinery's production of crucial products such as naphtha and polypropylene would catalyze the growth of s, plastics, and textiles.
The billionaire's remarks suggest that the refinery's operations would have a positive ripple effect on the Nigerian economy, fostering the expansion of diverse sectors.
"Expect jobs": Aliko Dangote lists the benefits of his refinery on Nigerian economy, launch date set
Legit.ng reported that Aliko Dangote, Africa's richest man and the founder of Dangote Group, has spoken out about the benefits of his new oil refinery as it prepares to commence operation in Nigeria.
According to ThisDay's report, Dangote was interviewed by the Economist Magazine's 'The World Ahead 2023', discussing the refinery's potential to be commissioned on May 22, 2023.
In the interview, Dangote highlighted the economic benefits of the refinery, stating that it will reduce Nigeria's dependence on imported fuel and save the country billions of dollars in foreign exchange.