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DANGOTE REFINERY BEGINS PRODUCTION


According to reports, the Dangote refinery has established a deadline for selling and exporting its first fuel.

The Dangote Refinery has taken a crucial step by releasing bids for the sale of its first two export cargoes of petroleum.

Dangote Refinery 2

Dangote has granted Trafigura the contract to load the first shipment, which will consist of 65,000 metric tons of sulfur straight-run fuel oil, by the end of February.

The refinery was reportedly getting ready to ship its first petroleum cargoes to the domestic market in weeks, according to rumors that surfaced.

 

Major Nigerian oil marketers had signed up with Dangote Refinery to transport and sell petroleum products from the $20 billion plant. According to the article, important marketers operating under the Major Oil Marketers Association of Nigeria (MEMAN) umbrella affirmed that, upon registration, they would start distributing fuel from the facility as soon as the contractual arrangements were settled. Additionally, according to sources, the refinery management was met by the Independent Petroleum Marketers Association of Nigeria (IPMAN) to discuss arrangements for product purchase.

 

Energy policy experts praised the progress but did not address whether the change will have an impact on local prices.

Shell Petroleum Development Company Limited is scheduled to deliver 475,000 barrels of crude oil to the Port Harcourt refinery, which will thereafter start up in the meatime. Because to the plant's poor condition, which necessitated testing and renovation to guarantee preparedness for sustainable operations, this is the first crude oil supply in a few years.

 

In another event, oil firms in Nigeria have been directed by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) to deliver around 483,000 barrels of crude oil per day to nearby refineries for the next six months, starting in January 2024. The project is a component of Nigeria's attempts to guarantee a consistent supply to regional refiners for domestic use. In the upcoming year, about six local refineries—including Nigeria's three refineries in Port Harcourt, Warri, and Kaduna, as well as the 650,000-capacity Dangote refinery—are anticipated to start producing.

Last modified on Friday, 23 February 2024 14:35
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Kayode Olorundare

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