Nigeria Set to Commission Dangote Refinery

Nigeria Set to Commission Dangote Refinery

Amid hopes of an end to Nigeria’s repeated fuel shortages, Dangote Petroleum Refinery will be commissioned. But the country’s main obstacle for achieving full production is the lack of crude supply, Reuters reported.

Nigeria, the largest oil producer in Africa, imports petrol, diesel and refined petroleum products since its refineries have become outdated over time.

According to the Nigeria’s government Muhammadu Buhari sees that the solution to the recurring feul shortages is producing 650,000 barrels a day.

While London-based research group Energy Aspects said commissioning was a difficult process and expected operations to start later this year, reaching 50-70% next year, with a staggered process of other units into 2025, Dangote intends to start refining crude in June.

NNPC, state-owned oil company, will be affected by the lower production, which will affect the company’s ability to fulfil an agreement to supply Dangote refinery with 300,000 bbl/d of crude, said economist Kelvin Emmanuel, who authored a report on oil theft last year.

“There are risks with supply of crude oil feedstock. I know that his (Aliko Dangote) risk mitigation is to import oil and if he does that there is a risk to the price because he cannot be buying in dollars and sell in naira,” said Emmanuel



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