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Dangote Refinery to commence petrol production this month, says VP of oil and gas

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Dangote Industries Limited (DIL) is set to revolutionize Nigeria’s oil sector with the commencement of Premium Motor Spirit (PMS) production this month at its state-of-the-art refinery.

The Vice President of Oil and Gas at DIL, Devakumar Edwin made this announcement during a visit by S&P Global officials to the Dangote Refinery in Ibeju-Lekki, Lagos.

Production Milestone

Edwin reaffirmed the company’s commitment to begin petrol production in July, aligning with previous promises.

He emphasized that this initiative will capitalize on Africa’s abundant crude oil resources to produce refined products locally, fostering industrial development, job creation, and economic prosperity.

Global Standards and Capacity

The $20 billion facility, Edwin noted, will produce high-quality products meeting international standards.

It is poised to satisfy 100% of Nigeria’s demand for petrol, diesel, kerosene, and jet fuel, with surplus quantities available for export.

Economic Impact

S&P Global lauded the refinery’s potential to alleviate Nigeria’s foreign exchange challenges and reduce pressure on the naira, thereby accelerating economic development. The 650,000 barrels-per-day refinery is expected to transform Nigeria into a net exporter of petroleum products.

Ravi Bhatia, Director and Lead Analyst of Sovereign and International Public Finance Ratings at S&P Global Ratings, praised the refinery after an extensive tour, highlighting its capacity and rapid development.

“It is a very impressive facility, able to process 650,000 barrels a day when at full capacity. It is the largest single-train refinery complex in the world,” Bhatia remarked.

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Advanced Technology and Local Engineering

The S&P team, including Associate Director Maxmillian McGraw, Director Omegu Collocott, Senior Analyst Charlotte Masvongo, and Director Samira Mensah, commended Dangote Industries’ integration of advanced technologies and stringent quality control measures.

They highlighted the Central Control Unit’s role in ensuring smooth, automated operations.

Edwin proudly stated that the refinery, currently operating at 350,000 barrels per day, aims to scale up to at least 500,000 barrels per day by July/August, producing petrol and ultra-low sulfur diesel.

The facility, designed to process a wide range of crudes, conforms to Euro V specifications and complies with various international emission norms.

Local Achievement and Environmental Standards

Edwin emphasized the pride in a Nigerian company designing and constructing the world’s largest single-train refinery complex, acting as the Engineering, Procurement, and Construction (EPC) contractor. The refinery also features a self-sufficient marine facility capable of handling the world’s largest vessels.

“The refinery can produce the best quality products in the world, Euro V grade. It is one of the most energy-efficient refineries and highly environmentally friendly, with sophisticated automation,” Edwin said.

Addressing Nigeria’s Refining Challenges

Nigeria, a leading oil producer, exports crude oil for refining and imports refined products due to insufficient operational refineries. The country imports an estimated 50 million liters of petrol daily to meet domestic demand.

In 2023, Nigeria spent approximately N12 trillion on petroleum product imports, marking an 18.68% increase from 2022, according to the National Bureau of Statistics (NBS).

The Dangote Refinery’s commencement of petrol production signifies a monumental shift for Nigeria’s oil industry, promising to enhance local refining capacity and economic stability.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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