Dangote Petroleum Refinery to produce fuel products by June, as NNPCL confirms 20% equity stake

Newly-inaugurated Dangote Refinery, Lekki, in Lagos will commence production of petroleum products by June, this year, according to the company.

President Muhammadu Buhari was in Lagos, early Monday, to commission the $18.5 billion refinery located at the Ibeju-Lekki axis of the state, describing the project as ‘a clear example of what can be achieved when entrepreneurs are encouraged and supported and when an enabling environment is created for investments and for businesses to thrive.’

This is also as the Nigerian National Petroleum Company Limited (NNPCL) has confirmed a 20 per cent equity stake in the newly-inaugurated private plant.

Heads of State from Ghana, Togo, Niger, and Senegal and a representative of the President of Chad, were all in attendance as President Buhari further called the inauguration ‘a significant milestone for Nigeria’s economy and a game changer for the downstream petroleum products market in the entire African region.’

Remarking at the commissioning, President of the Dangote Industries Group, Aliko Dangote said, however, that the refinery will produce its first fuel products by June 2023.

Dangote, who was speaking during the commissioning, Monday, described the Petroleum Refinery as ‘a fulfilment of a long held dream and the product of the Dangote Group’s corporate vision driven by our mission to produce what we consume and promote self-sufficiency in the basic needs of our people while competing globally in the areas of our comparative and competitive advantage.’

“Over two decades ago, we made the commitment to invest in downstream petroleum sector in response to increasing shortages of petroleum products in our country and the consequent challenges on our economy and its negative impact on the lives and livelihoods of our people,” Dangote said.

Continuing, he said: “Initially, we wanted to enter into the energy market by acquiring ground field refinery with then the government’s privatisation programme in 2007. Regrettably, the outcome of the exercise was result reverse and our payments are returned.

”This motivated us to rethink market entry strategy and our business model. We subsequently permitted to enter the market broadly with a vision to invest in a greenfield refinery that will transform the industry in Nigeria and Africa as a whole. And that is why we went for the biggest refinery ever built in the world.

“We intend to efficiently export competitively to market in Africa and outside the region. This is a clear opportunity for Nigeria given the African Union’s commitment to the creation of an African Common Market recently with the African continental free trade area.

“About 40% the refinery’s capacity will be available to export and this will result in significant foreign exchange into the country.”

The plant is designed with a capacity of producing 650,000 barrels per day of crude oil plus non-stop 1000 metric tonnes of polypropylene in a single train, which is the largest build ever.

“It is also designed to meet the highest quality standards for the high value products including premium motors, PMS, automotive, gas, oil, diesel, abrasion, fuel, kerosene, ATK all of Euro-V standards that will not only to meet Nigeria’s demand, but also to become a key player in the African and the global market.

“Its coastal location and offshore offshore loading and offloading single point moving facilities with a capacity to receive all crude oil supplies and evacuate up to 75% of our liquid products, given us direct access to the rest of Africa and the global market for exports,” Dangote further explained.

Meanwhile, it has also emerged that the Nigerian National Petroleum Company Limited (NNPCL) has already acquired a 20 per cent equity stake in the newly-commissioned Dangote Petroleum Refinery and Petrochemicals.

Group Chief Executive Officer of NNPCL, Mele Kyari while delivering his address at the ceremony confirmed its 20 per cent equity stake in the plant.

It would be recalled that, last week, Kyari announced that the NNPC would supply 300,000 barrels of crude to Dangote Refinery for the commencement of operations.

“As part of this significant project, NNPC Limited is proud to confirm its 20% equity stake in the Dangote Petroleum Refinery and Petrochemicals,” Kyari announced, Monday.

Kyari added that as part of this significant project, NNPC Limited is permitted to operate in advance in line with international best practice, “recognising the importance of protecting the environment, we have adopted to changing environmental health and safety policies to ensure that the binary operates in a safe and sustainable manner.”