Business a.m
Dangote Petroleum Refinery and Petrochemicals has purchased one million barrels of Agbami crude oil grade from Shell International Trading and Shipping Company Limited (STASCO).
STASCO is one of the largest trading companies in Nigeria and globally, trading over eight million barrels of crude oil per day. The purchase is considered a significant step towards boosting Nigeria’s domestic refining capacity and making the country less dependent on imported petroleum products.
Business a.m gathered that the first shipment of crude oil from STASCO, which contained one million barrels of Agbami crude, was offloaded at Dangote Refinery’s Single Point Mooring (SPM) and transferred to the refinery’s crude oil tanks. The first phase of crude oil supply is part of an agreement for STASCO to supply six million barrels of crude oil to the refinery. The 350,000 barrels per day that the refinery will process with this crude oil is expected to help alleviate Nigeria’s dependence on imported petroleum products.
According to sources familiar with the situation, the next four shipments will be provided by the Nigerian National Petroleum Corporation (NNPC) in two to three weeks, followed by the final six shipments, which will be provided by ExxonMobil.
The supply of crude oil from STASCO, NNPC, and ExxonMobil will help kickstart the production of diesel, aviation fuel, and liquified petroleum gas (LPG) at the Dangote refinery. Eventually, the refinery will produce Premium Motor Spirit (PMS), or petrol, which is a key product for Nigeria and other West African countries. The Dangote refinery is projected to help alleviate fuel supply challenges in Nigeria and neighboring countries by producing a greater supply of petroleum products. This will lead to lower prices and increased availability of these products, which are essential for economic development.
The Dangote Petroleum Refinery is uniquely designed to handle 100 per cent Nigerian crude oil, with the flexibility to process other crude oils as well. It has the capacity to process 650,000 barrels of crude oil per day, and can handle a wide range of crude oils, including African, Middle Eastern, and even U.S. light tight oils. The refinery is designed to meet 100 per cent of Nigeria’s demand for refined petroleum products such as gasoline, diesel, kerosene, and aviation jet fuel. It also has the capability to export surplus quantities of these products, providing economic benefits for the country.
Aliko Dangote, the president of Dangote Group, expressed delight to have reached the significant milestone in the construction of the refinery. According to him, the achievement is important for Nigeria as it demonstrates the company’s ability to develop and deliver large-scale capital projects.
The Dangote Group is a leading African conglomerate, with interests in cement manufacturing, sugar refining, salt processing, and real estate development. With this project, the company is further expanding its presence in the energy sector. Dangote sees the refinery as a key part of its strategy to promote local economic growth and job creation.
“Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market,” Dangote said.
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