Dangote Refinery Finally Set Date to Sell Fuel to Nigerians as Another Refinery Begins Production
- The Dangote refinery has reportedly set a date for exporting the first fuel and selling petroleum products
- A report quotes sources as saying the first shipment of fuel cargo is set to leave the refinery by the end of February
- The development follows the commencement of production by the Port Harcourt refinery after receiving 475,000 barrels from Shell
Pascal Oparada has over a decade of experience covering Tech, Energy, Stocks, Investments, and Economy.
The world's single train refinery, the Dangote Refinery, has made an essential move by issuing tenders to sell its first two fuel cargoes for export.
The development is an essential step for the newly launched refinery, which has generated a buzz in the industry.
Source: Getty Images
First fuel cargo to leave Dangote refinery
A Reuters report quotes three sources saying that the first cargo of 65,000 metric tons of sulphur straight-run fuel oil, which Dangote has awarded to Trafigura, is due to load at the end of February.
The second tender is for about 60,000 tons of naphtha, which three other sources told Reuters, with the tender closing on February 15, 2024.
The development comes after reports emerged that the refinery was preparing to deliver its first fuel cargoes to the domestic market in weeks,
Major marketers queue to lift fuel
Legit.ng reported that significant oil marketers in Nigeria had registered with Dangote Refinery to lift and distribute petroleum products from the $20 billion facility.
The report said that significant marketers under the auspices of the Major Oil Marketers Association of Nigeria (MEMAN) confirmed that with the registration, they would begin fuel distribution from the plant immediately after the commercial terms were finalised.
Also, reports say that the Independent Petroleum Marketers Association of Nigeria (IPMAN) revealed they met the refinery management to discuss the terms for product lifting.
The Petroleum Products Outlets Owners Association of Nigeria said that PETROAN has been in talks with the refinery management to supply products from the facility.
The report outlined the seven significant marketers, including 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc and NNPC Retail.
Adeola Yusuf, Energy Policy expert and Lead of Platforms Africa said the development is good but did not say if the move will affect local pricing.
He said.
"As I've always said, the Dangote refinery is a commercial enterprise and will not subsidise petroleum products for Nigerians.
The best it could do is to flood the local market with products which might cause a slight price adjustment. The best bet is for Nigeria's three refineries to begin production to reduce prices and make the products more accessible."
Port Harcourt refinery to begin production
In another report by Legit.ng, the Port Harcourt refinery is set to begin operations after receiving 475,000 barrels of crude oil from Shell Petroleum Development Company Limited.
The crude oil supply is the first to be made in the past few years due to the poor state of the plant, which called for rehabilitation and testing to ensure readiness for sustainable operations.
Port Harcourt refinery begins production after years of neglect
Shell stated that the recommencement of crude oil supply from the BOGT to Port Harcourt Refinery is a significant achievement and a game-changer for the industry and Nigeria.
The intensive preparations, partnerships, and dedication of both teams involved were responsible for overcoming challenges and ensuring safe and efficient supply operations.
According to Shell, the move will support the government's plan of a steady supply of petroleum products to the downstream market and other associated benefits to Nigeria's economy.
FG gives oil firms in Nigeria strict orders on Dangote, other refineries
Legit.ng reported that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has ordered oil companies in Nigeria to supply about 483,000 barrels of crude oil daily to local refineries for the next six months beginning January 2024.
The initiative is part of Nigeria’s efforts to ensure regular supply to local refiners for domestic consumption.
About six local refineries are expected to begin production in the coming year, including the 650,000-capacity Dangote refinery and Nigeria’s three refineries in Port Harcourt, Warri, and Kaduna.
PAY ATTENTION: Unlock the best of Legit.ng on Pinterest! Subscribe now and get your daily inspiration!
Source: Legit.ng
