Africa’s largest oil refinery, Dangote Refinery, has taken delivery of 1 million barrels of Agbami crude from Shell International Trading and Shipping Company (STASCO), one of the largest trading companies in Nigeria, to begin operations.
In a statement, the company said the maiden 1 million barrels, which represent the first phase of the 6 million barrels of crude oil to be supplied to Dangote Petroleum Refinery by a range of suppliers, should sustain the initial 350,000 barrels per day to be processed by the facility.
The company said next four cargoes will be supplied by the NNPC in two to three weeks and the final of the six cargoes will be supplied by ExxonMobil.
“This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS),” the company said.
The refinery, with a capacity of 650,000 barrels per day (bpd), will meet 100% of Nigeria’s demand for all refined petroleum products and will also have a surplus of each of these products for export.
The refinery is designed to process Nigerian crude with the ability to also process other crudes.
The project cost around $20 billion, up from initial cost estimates of between $12 billion and $14 billion.
Commenting on the delivery of the 1 million barrels of crude, President of the Dangote Group, Mr. Aliko Dangote stated: “We are delighted to have reached this significant milestone.This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects.Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”
Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor stated: “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulphur fuels for Nigeria and across West Africa and are happy to be enabling it.”
Meanwhile, some Nigerias have taken to social media to celebrate Aliko Dangote and the Management of the refinery for their efforts of completing the project and starting the refinery.
Bashir Ahmad, former aide to ex-President Muhammadu Buhari, said the event marks a significant milestone for Nigeria and the Dangote Group.
Taking to X formerly Twitter, Bashir Ahmad wrote: ”Heartfelt congratulations to Alhaji @AlikoDangote on the successful takeoff of the Dangote Refinery.The monumental achievement marks a significant milestone for the esteemed Dangote Group, Nigeria’s oil market, and the broader economy.”
Source: https://energynewsafrica.com
