DANGOTE REFINERY DISPELS RUMORS, SAYS NO PLANS TO SHUT PETROL UNIT
Read Time:2 Minute, 54 Second
BY OWOLABI OLUWADARA
The Dangote Petroleum Refinery has refuted a report suggesting it might suspend operations at its petrol unit for a duration of two to three months. The spokesperson for the Dangote Group, Anthony Chiejina, characterized the report as “false. ”
Reuters previously indicated that the petrol unit at the 650,000 barrel-per-day Dangote refinery could be closed for two to three months due to maintenance, citing industry analyst IIR Energy. The report revealed that the unit was reportedly halted around August 29 following catalyst leaks.
Furthermore, the report mentioned that the refinery intends to try restarting the 204,000 bpd Residue Fluidized Catalytic Cracking Unit on September 20; however, significant repairs and equipment replacements could result in an extended closure lasting several months.
The Dangote spokesperson questioned the news agency’s use of ‘could’ if it alleged certainty regarding the proposed shutdown.
“False information. Why ‘could’ if they are confident? ” Chiejina remarked when contacted for comments on Sunday. Reuters had mentioned that Dangote’s RFCCU was anticipated to remain offline for at least two weeks.
The Dangote refinery, which commenced crude processing in January 2024, has significantly diminished the petrol export trade from Europe to West Africa. Exports of gasoline from the European Union and the United Kingdom to Nigeria dropped from an average of approximately 200,000 bpd in 2024 to about 120,000 bpd in the first half of this year, according to data from Kpler.
Additionally, it has dispatched two gasoline shipments to the United States East Coast, expected to arrive in the New York area later this month, marking a significant milestone as industry watchers closely monitor if and when the facility would produce fuel meeting U. S. standards. The Dangote refinery is aiming to ramp up production to 700,000 bpd by December 2025. Meanwhile, it was reported that the refinery imported Ghana’s Sankofa crude in August, which is a heavier grade compared to the usual light sweet variants.
READ MORE:
“In early August, a significant milestone was achieved with the arrival of a 900 kb Suezmax vessel carrying Sankofa crude from Ghana, marking the first instance of Dangote importing Ghanaian crude. Sankofa, a medium-sweet crude, is denser than the typical light sweet slate processed at the refinery. It is akin to other medium-sweet grades received thus far, such as Brazilian Mero and Tupi, as well as Angolan Pazflor,” reports Kpler.
The Dangote refinery has consistently lamented its challenges in obtaining sufficient feedstock locally. The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, emphasized that the nation must increase production to satisfy both local and international demands.
As reported on the Kpler platform, crude deliveries to the Dangote refinery surged to an unprecedented monthly volume of 570,000 barrels per day in July. Approximately 60 percent of these shipments consisted of light sweet crude from the United States, while the remaining 40 percent comprised Nigerian grades.
“This signifies the inaugural instance that American crude has surpassed Nigerian supply in Dangote’s import composition, a transition propelled by persistent difficulties in obtaining domestic barrels and the price competitiveness of WTI,” the report stated. The diversification, it was noted, emphasized Dangote’s adaptability to refine lower API grades.
In the future, Dangote is anticipated to persist in procuring a combination of West African and American grades, complemented by domestic barrels, including Amenam, Bonny Light, and Escravos.
Happy
0 %
Sad
0 %
Excited
0 %
Sleepy
0 %
Angry
0 %
Surprise
0 %
0
0