Dangote Refinery Reassures Petrol Refining Starts July

Dangote refinery 650, 000 barrels a day will start production of 10 ppm sulphur diesel (ULSD) in the week commencing 17 June and petrol production will follow as early as 10 July.

This is according to Aliko Dangote who spoke to Channels Television on 11 June.

The dates suggest a slight delay from most recent guidance of diesel exports and local gasoline sales this month, as made by the company’s vice president for oil and gas Devakumar Edwin in May.
Dangote said, the offshore Lome diesel market had not been providing good quality diesel, and that west Africa had been used as a dumping ground for poor quality oil products, with 2,000ppm-3,000ppm sulphur content products previously being imported into Nigeria.

In the same interview, the president of Nigeria’s Senate, Godswill Akpabio, praised the Belgian government’s decision to ban the export of low quality to ban the export of low quality fuels to Belgium supplied just 9pc of Nigeria’s seaborne gasoil and diesel imports this year, down from 22pc last year, according to Vortexa.

But Belgium has increased its share of the Nigerian finished-grade gasoline import market, supplying 35pc of its seaborne imports so far this year, up from 29pc in 2023.
The Dangote refinery has until now been producing around 680-700ppm gasoil for supply to local and internationals markets.

Gasoil loadings of at least 20,000t fob Dangote were last week offered at discounts of $35/t-$30/t against front-month Ice gasoil futures, according to sources.

These levels are very low compared with the northwest European market, where 30,000t fob ARA cargoes were assessed at a discount of $1/t against front-month Ice gasoil futures.

The heavy discount on gas oil loadings fob Dangote reflect stricter pricing terms, including upfront payment in lieu of letters of credit, and the payment for product in dollars and not the local naira currency.

The Dangote refinery will start producing petrol between 10-15 July, Aliko Dangote told Channels Television.

The absence of gasoline production since Dangote started crude processing in January has meant its exports of naphtha — a key gasoline blending component — have so far totalled 720,000t, according to Kpler.

The refinery hosts three straight-run naphtha tanks with a combined capacity of 90,000m³, three hydrotreated heavy naphtha tanks of a combined 90,000m³, and three hydrotreated light naphtha tanks with total capacity of 30,000m³, according to sources.