Since becoming operational in January 2024, the Dangote Refinery has been compelled to rely on crude oil imports due to insufficient deliveries from the Nigerian National Petroleum Corporation (NNPC).
Announcement from Aliko Dangote
Nigerian billionaire Aliko Dangote announced on Saturday, July 20, that his refinery aims to reach 85% of its production capacity by the end of the year, which equates to 550,000 barrels per day (bpd).
Current Operational Capacity
“The refinery, currently operating at approximately 50% of its total capacity of 650,000 bpd, plans to commence gasoline production in August, which will boost its capacity,” Dangote stated during a tour of the facility located in the outskirts of Lagos.
Increasing Crude Imports
Dangote also mentioned that the facility needs to ramp up its crude imports due to inadequate domestic supplies. “The refinery has received only five crude shipments from NNPC since starting operations earlier this year, instead of the expected fifteen. Hence, we have purchased Brazilian and American crude.”
Investment and Supply Agreements
The refinery, built with a $20 billion USD investment, had already secured a supply agreement in May with the French group TotalEnergies, following a tender to find suppliers capable of providing 2 million barrels of West Texas Intermediate (WTI) crude per month, for a year starting from July.
Future Production Goals
By achieving this increased capacity, the Dangote Refinery aims to significantly enhance its output, contributing to both domestic fuel needs and international supply chains.
Strategic Positioning
Located in a key industrial area, the refinery’s strategic position in Lagos plays a crucial role in its logistical and distribution capabilities, ensuring efficient processing and delivery of petroleum products.