Dangote Oil Refinery To Reach Full Capacity In 30 Days, Expands Global Reach

The Dangote Oil Refinery, Africa’s largest oil refinery, is set to reach full operational capacity within the next 30 days, according to its chief executive, Edwin Devakumar. The refinery, which has a production capacity of 650,000 barrels per day, began operations in January 2023 with the production of diesel, naphtha, and jet fuel, followed by petrol production in September.

Currently operating at 85% capacity, the refinery aims to reach 100% production by next month, potentially disrupting European oil suppliers. However, it has faced challenges in securing adequate crude supply locally. Despite an agreement with the Nigerian government to purchase crude in naira, the refinery was forced to import crude last year due to local supply shortages.

According to the Organisation of the Petroleum Exporting Countries (OPEC), Dangote’s refinery is already impacting the European oil market, raising concerns about the long-standing gasoline trade between Europe and Africa, which is valued at approximately $17 billion annually. To sustain its operations, Dangote has requested 550,000 barrels per day from Nigerian oil producers for the first half of 2024. In response, Nigeria’s oil regulator has warned that it will block export permits for producers who fail to meet local refinery supply requirements.

Global Expansion Efforts

Beyond domestic operations, Dangote is making strides in the international market. Last week, Dangote announced that the refinery had dispatched two cargoes of jet fuel to Saudi Aramco, marking a significant step toward global market penetration.

“We are already reaching the ambitious goals we set for ourselves, and we are pleased to announce that we have just sold two cargoes of jet fuel to Saudi Aramco,” Dangote stated.

S&P Global Commodity Insights reports that Nigerian-made aviation fuel from the Dangote Refinery is now being recommended for use in major global airports, including Heathrow in the UK. The refinery has become the sole supplier of jet fuel to Nigerian airlines, accounting for at least two-thirds of the country’s supply and nearly half of West Africa’s consumption. As a result, Nigeria’s jet fuel imports have drastically reduced from 13,000 barrels per day in 2023 to 5,000 barrels per day in 2024.

The refinery’s ability to achieve full capacity and successfully export products to global markets highlights its potential to transform Nigeria’s oil industry, reduce dependency on European imports, and strengthen the nation’s energy security. As it continues to expand its reach, the Dangote Refinery is poised to become a key player in the global energy landscape.