NNPC Distributes Four Crude Oil Cargoes To $20bn Dangote Refinery

NNPC Distributes Four Crude Oil Cargoes To $20bn Dangote Refinery

NNPC Ltd. has planned to deliver four crude oil cargoes, totaling four million barrels, as part of its February program to the $20 billion Dangote refinery.

This delivery is intended to increase the total supply to around one billion barrels, as six million barrels have already been supplied to the refinery.

This amount is considered adequate for the plant to undergo test runs of its operations in the upcoming weeks, as reported by Reuters.

It stated: “OPEC member Nigeria currently relies on imports for most of the fuel it consumes, but the Dangote refinery is expected to make it self-sufficient and able to export fuel to neighbours in West Africa, potentially transforming oil trading in the Atlantic Basin.

“Dangote received 1 million barrels of Nigeria’s Agbami crude on Monday, lifting total volumes received since December to 6 million barrels.

“NNPC supplied the 650,000 barrel per day (bpd) plant with four of the cargoes, two of the sources said.”

According to Edwin Devakumar, Dangote’s group executive director for strategy, portfolio development, and capital projects, the company did not make any requests for cargoes from NNPC for January.

“We are starting the refinery and if we continue to line up cargoes our inventory will build up as well as costs,” he said. “If everything goes well, we will run 8-10 days of operation then we will begin to line up cargoes.”

Additionally, the refinery is exploring the possibility of securing crude supplies from other countries.

It has been mentioned that the refinery has nominated four NNPC cargoes for February, and the NNPC is inclined to wait for the plant’s test runs before sending additional oil.

The refinery’s initial processing capacity is projected to reach 350,000 barrels per day, with the goal of reaching full capacity by the end of the year, as per Dangote’s statement.

The Managing Director of Dangote Ports Operations, Mr. Akin Omole had said: “Once the 6 million barrels are fully delivered, it will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and Liquefied Petroleum Gas (LPG) before subsequently progressing to the production of Premium Motor Spirit (PMS).”

According to the company, “Dangote Oil Refinery is 650,000 barrels per day (BPD) integrated refinery project under construction in the Lekki Free Zone near Lagos, Nigeria. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility.”