Dangote Refinery affirms July commitment to petrol production

The Vice President of oil and gas at Dangote Industries Limited (DIL), Devakumar Edwin has confirmed that the Dangote refinery is on track to begin petrol production this month of July.

This announcement came during a visit by officials from S&P Global, who were conducting a sovereign credit ratings assessment of Nigeria, accompanied by officials from Nigeria’s Ministry of Finance.

In his remarks over the weekend, Edwin assured that despite a slight delay, the refinery is set to commence petrol supply in July, a month later than initially planned by Africa’s richest person, Aliko Dangote.

Edwin emphasized that products from the $20 billion facility meet high-quality standards and can satisfy 100 percent of Nigeria’s demand for petrol, diesel, kerosene, and aviation fuel, with surplus for export.

Currently operating at a capacity of 350,000 barrels per day (bpd), Edwin outlined plans to scale up production to at least 500,000 bpd by July/August, enabling the refining of petrol and ultra-low sulphur diesel.

He highlighted the refinery’s strategic role in leveraging Africa’s abundant crude oil resources to foster local industrial development, job creation, and economic growth.

The facility boasts a self-sufficient marine terminal capable of handling the largest vessels globally, underscoring its extensive operational capabilities.

S&P Global expressed confidence in the refinery’s potential to address Nigeria’s foreign exchange challenges, reduce pressure on the local currency, and significantly boost the nation’s economic landscape.

Ravi Bhatia, director and lead analyst of sovereign and international public finance ratings at S&P Global Ratings, praised the refinery as a transformative project that positions Nigeria to become a net exporter of petroleum products.

He highlighted the facility’s impressive scale as the world’s largest single-train refinery complex and emphasized its potential to bridge Nigeria’s gap in refined fuel imports.

“This facility is a major step towards Nigeria’s goal of refining its crude domestically and saving costs on imports,” said Bhatia.

He stressed the positive medium-term economic impact of the refinery, reflecting optimism from S&P Global’s comprehensive assessment.

The impending commencement of petrol production at the Dangote refinery marks a significant milestone in Nigeria’s oil sector, promising enhanced energy security, economic stability, and a bolstered position in the global petroleum market.

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