Business Day

Fuel starts flowing at Dangote’s refinery after years of delays

- Elisha Bala-Gbogbo Abuja

Nigeria’s Dangote oil refinery has begun producing diesel and aviation fuel, the company says, after years of constructi­on delays at the 650,000 barrels per day plant.

The refinery, Africa’s largest, was built on a peninsula on the outskirts of the commercial capital Lagos at a cost of $20bn by the continent’s richest man Aliko Dangote.

Although Nigeria is Africa’s top energy producer, it has relied on imports for most of the fuel it consumes. The Dangote refinery is expected to not only make it self-sufficient but also allow it to export fuel to neighbouri­ng West African countries, potentiall­y transformi­ng oil trading in the Atlantic Basin.

Company officials said test runs could begin this week after the refinery received a sixth crude oil cargo on January 8.

REFINERY WAS BUILT ON THE OUTSKIRTS OF THE COMMERCIAL CAPITAL LAGOS AT A COST OF $20BN

“This is a big day for Nigeria. We are delighted to have reached this significan­t milestone,” the company said in a statement posted on social media platform X.

The plant received 1-million barrels of Nigeria’s Agbami crude on Monday, taking the total volume received since December to 6-million barrels.

Nigeria’s state-owned NNPC is expected to supply four crude cargoes to the refinery from its February programme.

It could take months after the start-up of the refinery’s crude distillati­on unit to move from test runs to the production of high-quality fuels at full capacity, according to experts.

Dangote has said it will start by refining 350,000 barrels per day, hoping to ramp up to full production later this year.

 ?? /Reuters ?? Test runs: Storage tanks are seen at the Dangote petroleum refinery in Ibeju-Lekki, Lagos, Nigeria.
/Reuters Test runs: Storage tanks are seen at the Dangote petroleum refinery in Ibeju-Lekki, Lagos, Nigeria.

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