Dangote Refinery Considers Other Countries as NNPC Delays Crude Oil Supply
- Dangote Petroleum Refinery has received its sixth batch of one million barrels of crude from the NNPC
- The refinery also expects another four million barrels from the state oil company under its February programme
- This will bring the total crude oil supply to the Africa's largest refinery to about one billion barrels
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
Dangote Petroleum Refinery received its sixth batch of one million barrels of crude from the Nigeria National Petroleum Company Limited (NNPC Ltd) on Monday, January 8, 2024.
Source: Getty Images
The largest refinery in Africa is also getting set to receive four crude oil cargoes (four million barrels) under its February programme from the state oil company.
The expected cargo will improve the total supply to about one billion barrels and adequately allow for a test run of its operations, according to Reuters.
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What you need to know:
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NNPC's role in supplying crude
A source told the news agency that the NNPC supplied the 650,000 barrel per day (bpd) plant with four out of the six cargoes.
Edwin Devakumar, Dangote's group executive director for strategy, portfolio development, and capital projects, said the company did not request cargo from NNPC for January.
Meanwhile, another source said the NNPC wanted to wait for the plant's test run before sending more oil.
Alternative to NNPC's crude
Devakumar said the plant will soon begin to line up cargoes.
He said:
"We are starting the refinery and if we continue to line up cargoes our inventory will build up as well as costs. If everything goes well, we will run for 8-10 days of operation then we will begin to line up cargoes."
He also revealed that the refinery is exploring the option of sourcing crude from other countries.
Dangote to revolutionalise oil trade in Africa
Nigeria, an OPEC member, currently gets the majority of its fuel from imports, but the Dangote refinery is projected to change that by enabling it to export fuel to its neighbours in West Africa and perhaps revolutionise the oil trade in the Atlantic Basin.
According to Dangote, the first processing capacity is anticipated to reach 350,000 bpd, with the goal of scaling up to full capacity by year's end.
After Dangote, another Nigerian billionaire builds new refinery
Legit.ng earlier reported that a Chinese cargo ship, laden with a consignment of the Akwa Ibom refinery project, berthed in Calabar port in Cross River state.
The development was a significant milestone in the construction of a state-of-the-art refinery in Akwa Ibom state.
BusinessDay reports that two refinery projects are expected to be located in the state's Eket and Onna local government areas.
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