By Raven
November 12, 2023 | 2:11 PM
In a significant stride towards energy independence, Aliko Dangote, the African billionaire, has announced that his much-anticipated refinery project has secured a license to process over 300,000 barrels of Nigerian crude daily, with gasoline production set to kick off imminently.
Dangote’s refinery, with an ambitious capacity of 650,000 barrels per day, has been heralded as a transformative force for Nigeria and sub-Saharan Africa. Although it missed its initial production target in August, Dangote remains resolute, assuring that the refinery will commence operations “very very soon.”
“We don’t want to start our refinery with foreign goods; we want to start with Nigerian crude,” emphasized Dangote during an interview in Riyadh at the Saudi-Nigeria business roundtable. He expressed confidence that the first glimpses of their gasoline products would be visible shortly.
Despite the delays, Dangote’s refinery aims to make Nigeria self-sufficient in fuels, ultimately leaving a surplus for export. At full capacity, it is projected to produce 27 million litres of diesel, 11 million litres of kerosene, and 9 million litres of jet fuel. Dangote emphasized the refinery’s commitment to sourcing crude from various Nigerian producers, including the state-owned Nigerian National Petroleum Company (NNPC).
As of October 2023, Nigeria’s crude oil production reached 1.56 million barrels per day, marking the highest output in nearly two years. The introduction of a new grade of crude named Nembe, sold in October to France and the Netherlands, further signifies the country’s commitment to expanding its oil output.
The Nembe crude stream, managed by a joint venture involving the NNPC and Aiteo Eastern E&P Co. Ltd, is seen as a strategic move to boost Nigeria’s oil capacity. Despite challenges such as crude theft and pipeline attacks in the Niger Delta impacting the country’s ability to meet OPEC quotas, these recent developments signal positive momentum for Nigeria’s oil sector.
With Aliko Dangote’s refinery poised to play a pivotal role in Nigeria’s energy landscape, the nation is on the brink of a transformative era, reinforcing its position as a key player in the global energy market.
