The much-anticipated Dangote refinery is set to commence operations in December 2023, albeit with a noteworthy adjustment to its initial production volume. Initially projected to produce 650,000 barrels per day (bpd), the refinery’s production capacity has been revised to 350,000bpd. Aliko Dangote, the Chairman of Dangote Group, confirmed this update in an interview with the Financial Times over the weekend.
Dangote revealed that the refinery, which has faced various challenges during its development, is poised to start operations at the reduced production rate of 350,000 barrels a day. He acknowledged the difficulties encountered in the project, expressing gratitude that the company has overcome these challenges to reach its destination. Dangote emphasized the resilience required to navigate such hurdles, stating, “It is either we sink, or we sail through. And we thank Almighty that at least we have arrived at the destination.”
Despite the adjustment in production capacity, the Chairman disclosed that a deal has been finalized for the first cargo of approximately 6 million barrels of crude, scheduled for delivery in December 2023. This signifies a significant step forward for the refinery, marking progress towards its operational phase.
The Nigerian National Petroleum Company Limited has shown support for the Dangote refinery project, with an equity contribution that includes the supply of six million barrels of crude oil. This supply agreement is set to commence next month, providing 200,000 barrels of oil per day to the Dangote refinery, as part of a one-year arrangement.
The impending commencement of operations at the Dangote refinery holds strategic significance for Nigeria’s energy landscape and the broader African oil and gas sector. The refinery’s operational success will not only contribute to domestic energy security but also potentially position Nigeria as a major player in the global refining industry.
