NNPC Allocates Four Crude Oil Cargoes to Dangote Refinery Worth $20 Billion
NNPC Ltd. has announced plans to supply four crude oil cargoes, totaling four million barrels, to the $20 billion Dangote Refinery as part of its February program. This allocation will bring the total supply of crude oil to the refinery to approximately one billion barrels, with six million barrels already delivered.
According to Reuters, this significant supply of crude oil will be instrumental in allowing the Dangote Refinery to begin test runs of its operations in the coming weeks. The Dangote Refinery is a critical project for Nigeria, as it is expected to make the country self-sufficient in fuel production and potentially transform oil trading in the Atlantic Basin.
The refinery has already received one million barrels of Nigeria’s Agbami crude, bringing the total to six million barrels since December. NNPC has provided the plant with four of the cargoes, each containing 650,000 barrels per day.
Edwin Devakumar, Dangote’s group executive director for strategy, portfolio development, and capital projects, explained that the company did not request cargoes from NNPC for January, as they are focused on starting the refinery and running initial operations. Devakumar also mentioned that the refinery is exploring the possibility of sourcing crude supplies from other countries.
The refinery has nominated four NNPC cargoes for February, indicating a continued partnership between the two entities. However, NNPC is waiting for the results of the plant’s test runs before sending additional oil.
Once operational, the refinery is projected to have an initial processing capacity of 350,000 barrels per day, with plans to ramp up to full capacity by the end of the year. Akin Omole, Managing Director of Dangote Ports Operations, stated that the delivery of the six million barrels of crude will facilitate the initial run of the refinery and the production of diesel, aviation fuel, and Liquefied Petroleum Gas (LPG), with plans to progress to the production of Premium Motor Spirit (PMS).
The Dangote Oil Refinery project, with a capacity of 650,000 barrels per day, is under construction in the Lekki Free Zone near Lagos, Nigeria. Once completed, it is expected to be Africa’s largest oil refinery and the world’s largest single-train facility.
This partnership between NNPC and the Dangote Refinery stands as a pivotal moment in Nigeria’s journey towards fuel self-sufficiency and enhanced oil trading capabilities. As the refinery progresses towards full operation, its impact on the regional and global oil markets is anticipated to be significant.
