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As Nigeria inches closer to achieving its goal of becoming a net exporter of petroleum products, the Dangote refinery is making steady progress in its trial runs for petrol production.
With a capacity to churn out 650,000 barrels per day, the facility is poised to become a game-changer in the nation’s energy sector, with full operations set to commence by mid-September.
After a series of delays, the $20 billion Dangote refinery, brainchild of Africa’s richest man Aliko Dangote, is finally making headway in its quest to produce petrol.
Initially slated for a May launch, followed by a revised July timeline, the refinery has thus far only managed to churn out diesel and other distillate fuels. However, with test runs underway, the facility is edging closer to realizing its petrol production ambitions.
Billions of dollars are at stake as Africa’s largest refinery inches closer to realizing its full potential.
According to a note by industry monitor IIR Energy, as cited by Reuters, the Dangote refinery is making progress in its test runs, paving the way for the long-awaited production of petrol.
“It is possible that there could be further extensions”, IIR said in a note to clients.
The Dangote refinery’s impending operational launch is set to send shockwaves through the Europe-to-Africa fuel trade, fundamentally altering the region’s energy dynamics. By producing refined products locally, Nigeria will drastically reduce its reliance on imports, ushering in a new era of energy security and self-sufficiency.
Read also: Tinubu: NNPC Ordered To Trade Crude With Dangote In Naira
The Federal Government’s committee on crude oil sales to local refineries in naira has made significant progress, securing an agreement with Dangote Petroleum Refinery for the launch of petrol production in September. This development is a crucial step towards Nigeria’s goal of achieving energy independence and reducing its exposure to global fuel price volatility.
The report stated that the Federal Government also disclosed that the sale of crude oil to Dangote Refinery and other local refineries will commence on October 1, 2024.
Minister of Finance and Coordinating Minister of the Economy Wale Edun made a major revelation during a meeting with the Implementation Committee in Abuja. Edun announced that the Federal Government’s committee has successfully negotiated an agreement with Dangote Petroleum Refinery, paving the way for the refinery to roll out petrol production in September.
During the meeting, Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service, and the Chairman of the Technical Sub-Committee provided a key update on the Dangote Petroleum Refinery’s progress. They confirmed that the refinery is on track to make its first PMS delivery next month, as stipulated in existing agreements.
