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  • Dangote Refinery awaits fifth one million barrels of crude

    Dangote Refinery awaits fifth one million barrels of crude

    • Gets fourth 1m barrels

    Dangote Refinery is awaiting the delivery of the fifth one million barrels of crude from the  Nigerian National Petroleum Company Limited (NNPCL) as the build up to the six million barrels needed for the plant to commence its refining. 

    The company said  NNPCL has delivered another one million barrels of crude oil to the refinery being the fourth fresh one million barrel of crude oil that has been supplied to the refinery in the last few weeks.

    The refinery is scheduled to receive six million barrels of crude before the commencement of production.

    In a statement, the company yesterday said: “Preparations are in top gear for the commencement of production in Dangote Refinery, as the petrochemical company has received the fourth crude shipment of one million barrels of bonny light crude supplied by the Nigeria National Petroleum Corporation Limited (NNPCL), and expecting the fifth crude shipment, anytime from now.

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    “The fresh one million barrels of crude was the fourth consignment to be delivered to the Dangote facility out of the six million barrels of crude being expected by the world’s largest single-train refinery.”

    The statement recalled that Dangote Refinery had earlier received three million barrels of crude.

    According to the statement, the Managing Director of Dangote Ports Operations, Mr. Akin Omole, had then told reporters at the Dangote Quay, Ibeju-Lekki, Lagos that the Refinery will receive about four million crude shipment before the end of last year and the balance by  early January 2024.

     He said the crude supply would put the Refinery in good stead to take off.

    The refinery said once the six million barrels were fully delivered, it will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS).

    “This latest development will play a pivotal role in alleviating the fuel supply challenges faced by Nigeria as well as the West African countries.

    Designed for 100% Nigerian crude with the flexibility to process other crudes, the 650,000 barrels per day Dangote Petroleum Refinery can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries.

    Dangote Petroleum Refinery can meet 100 per cent of Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also has a surplus of each of these products for export. 

    The refinery was built to take crude through its two SPMs located 25 kilometres from the shore and to discharge petroleum products through three separate SPMs. In addition, the refinery can load 2,900 trucks a day at its truck-loading gantries. 

     Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.  

    The refinery is designed to comply with US EPA, European Emission Norms, and Department of Petroleum Resources (DPR) emission/effluent norms as well as African Refiners and Distribution Association (ARDA) standards. 

    While receiving the first consignment, Dangote said: “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. 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 Refinery gets fourth one million barrels of crude

    Dangote Refinery gets fourth one million barrels of crude

    The Nigerian National Petroleum Company Limited (NNPCL) has delivered one million barrel of crude oil to Dangote Refinery for commencement of production. 

    The consignment is the fourth fresh one million barrel of crude oil that has been supplied to the refinery in the last few weeks.

    The refinery is scheduled to receive six million barrels of crude oil before commencement of production.

    A press statement that the company issued yesterday said: “Preparations are in top gear for the commencement of production in Dangote Refinery, as the petrochemical company has received the fourth crude shipment of, one million barrels of bonny light crude supplied by the Nigeria National Petroleum Corporation Limited (NNPCL), and expecting the fifth crude shipment, anytime from now.

    “The fresh one million barrels of crude was the fourth consignment to be delivered to the Dangote facility out of the six million barrels of crude being expected by the world’s largest single-train refinery.”

    The statement recalled  that Dangote Refinery had earlier, received three million barrels of crude.

    According to the statement, the Managing Director of Dangote Ports Operations, Akin Omole, had then told newsmen at the Dangote Quay, Ibeju-Lekki, Lagos that the Refinery will receive about four million crude shpment before the end of 2023 and the remaining two by the early of January 2024.

     He said the crudes supply would put the Refinery in good stead to commence operation.

    The refinery 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 LPG before subsequently progressing to the production of Premium Motor Spirit (PMS).

    “This latest development will play a pivotal role in alleviating the fuel supply challenges faced by Nigeria as well as the West African countries.

    Designed for 100% Nigerian crude with the flexibility to process other crudes, the 650,000 barrels per day Dangote Petroleum Refinery can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries.

    Dangote Petroleum Refinery can meet 100% of Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also has a surplus of each of these products for export.

    The refinery was built to take crude through its two SPMs located 25 kilometres from the shore and to discharge petroleum products through three separate SPMs. In addition, the refinery can load 2,900 trucks a day at its truck-loading gantries.

    Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.

    The refinery is designed to comply with US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms as well as African Refiners and Distribution Association (ARDA) standards.

    While receiving the first consignment, President of Dangote Group, Mr. Aliko Dangote stated: “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. 

    “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 refinery receives first consignment of 1m barrels

    Dangote refinery receives first consignment of 1m barrels

    • Aliko: We are delighted to reach significant milestone

    Dangote Petroleum Refinery and Petrochemicals plant has procured  one  million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO).

    The STASCO cargo reportedly contained one  million barrels from Agbami and sailed to Dangote Refinery’s Single Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks.

    The maiden 1 million barrels, which represent the first phase of the 6 million barrels of crude oil to be supplied to Dangote Petroleum Refinery by a range of suppliers, should sustain the initial 350,000 barrels per day to be processed by the facility. The next four cargoes will be supplied by the NNPC in two to three weeks and the final of the six cargoes will be supplied by ExxonMobil.

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    Elated by the development, President of Dangote Group, Aliko Dangote said: “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. 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.”

    Responding to the business mogul’s remark, the Country Chairman of Shell Companies in Nigeria, Osagie Okunbor, said: “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulphur fuels for Nigeria and across West Africa and are happy to be enabling it.”

  • Dangote Refinery receives first 1m barrels of crude shipment

    Dangote Refinery receives first 1m barrels of crude shipment

    Dangote Petroleum Refinery and Petrochemicals plant says it has received its first one million barrels of Agbami Crude grade from Shell International Trading and Shipping Company Limited, STASCO.

    In a statement on Friday, December 8, Dangote Refinery said the STASCO cargo contained one million barrels from Agbami and sailed to Dangote Refinery’s Single Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks.

    The statement reads: “The maiden one million barrels, which represent the first phase of the 6 million barrels of crude oil to be supplied to Dangote Petroleum Refinery by a range of suppliers, should sustain the initial 350,000 barrels per day to be processed by the facility.

    “The next four cargoes will be supplied by the NNPC in two to three weeks and the final of the six cargoes will be supplied by ExxonMobil.

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    “This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS).

    “This latest development will play a pivotal role in alleviating the fuel supply challenges faced by Nigeria as well as the West African countries.”

    The Refinery also stated: “Designed for 100% Nigerian crude with the flexibility to process other crudes, the 650,000 barrels per day Dangote Petroleum Refinery can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries.

    “Dangote Petroleum Refinery can meet 100% of the Nigeria’s requirement of all refined products, gasoline, diesel, kerosene, and aviation jet, and also have surplus of each of these products for export.

    “The refinery was built to take crude through its two SPMs located 25 kilometres from the shore and to discharge petroleum products through three separate SPMs.

    “In addition, the refinery has the capacity to load 2,900 trucks a day at its truck loading gantries.

    “Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications.

    “The refinery is designed to comply with US EPA, European emission norms, and Department of Petroleum Resources (DPR) emission/effluent norms as well as African Refiners and Distribution Association (ARDA) standards.”

    Dangote, while speaking on the new milestone, said: “We are delighted to have reached this significant milestone.

    “This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. 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.”

    Also, the Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor, said: “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulphur fuels for Nigeria and across West Africa and are happy to be enabling it.”

  • Poor roads may hurt Lekki FTZ, Dangote refinery, Rep warns

    A member of the House of Representatives, Hon. Adebayo Balogun (Ibeju-Lekki Federal Constituency, Lagos), has warned that roads in the Free Trade Zone and Dangote Refinery cannot accommodate the emerging industrial revolution in the region.

    Balogun said another Apapa gridlock situation might happen in Ibeju-Lekki Local Government Area, which could negate the benefits of port operations if futuristic and proactive measure is not taken to expand the road.

    The lawmaker said: “If the economic projects that contribute most to the federation’s account are not nurtured for sustainability, we might gradually be walking ourselves into a state of permanent recession.”

    To him, “Dangote Oil Refinery, which is the largest in Africa with its conglomerates like a fertiliser plant, a petrochemical plant and a sub–sea gas pipeline project, is expected to commence operations at the local government.”

    Speaking on the need to construct a coastal road from Akodo-Ise to Victoria Island, Lagos, Balogun noted that existing roads have been damaged.

    He urged the Federal Ministry of Power, Works and Housing to commence the process of completing the whole stretch of the Port Harcourt – Lagos coastal road.

    ”The Ministry in the interim, should make provisions in the 2020 budget estimates for the construction of a coastal road from Ise in Ibeju Lekki to Victoria Island in Eti-Osa Local Government Area of Lagos State,” he said.

    This call, according to him, is in furtherance to a motion he moved earlier, titled: “Urgent need to construct the Lekki coastal road from Akodo Ise to Victoria Island, Lagos State”.

    He noted in the motion that Ibeju-Lekki Local Government Area is located along the coastal line of Lagos State and is probably the fastest growing economic and industrial hub, especially with establishment of the Lekki Free Trade Zone, which sits on a total land area of 16,500 hectares.

    “And with a daily production of 650,000 barrels per day will transform the Nigerian economy from a net importer of refined petroleum products to a net exporter of petroleum product,” he said.

    He also noted ‘that the Annual Statistics Bulletin (ASB) Report for 2019 has shown that the value of exports of petroleum products in 2018 amounted to $54.513 billion, while its import was $54.645 billion, making export growth by $16.53 billion in 2018 from $37.983 billion in 2017, to have no impact as the value of imports already outweigh exports.’

    According to him, the Lekki Deep Sea Port, which will also be sited along the coastal line of Lekki, will after completion, increase the revenue from Lagos ports from its present value of over N250 billion to over N600 billion, as importers, who are using the ports of neighbouring countries would switch to the Lekki Deep Sea Port.

    “The Lekki coastline road, starting from Akodo Ise in Ibeju Lekki Local Government Area to Ahmadu Bello Way, Victoria Island in Eti-Osa Local Government Area, is part of the Federal Government’s proposed Port Harcourt to Lagos Coastal road project,” he said.

  • NNPC not competing with Dangote Refinery

    State-run oil firm, the Nigerian National Petroleum Corporration (NNPC), yesterday said it ws not willing to compete with Dangote Refinery over market share.

    Its Group Managing Director, Mallam Mele Kyari, said rather than compete, the Corporation will continue to provide support to the promoters of the project to boost domestic refining capacity.

    Receiving the President and Chief Executive Officer of the Dangote Group, Alhaji Aliko Dangote, at the NNPC Towers, Abuja, Kyari said as the chief enabler of the economy, the NNPC has a duty to rally industry players such as Dangote Group to achieve the elusive target of making the country a net exporter of petroleum products.

    According to a statement, the NNPC GMD assured that the same level of support would be provided to other promoters of refineries, adding that the ultimate goal was to enhance domestic refining to the point of self-sufficiency and ultimately for export.

    Earlier in his presentation, Alhaji Dangote said the business approach of the Dangote Refinery was to see NNPC as a collaborator rather than a competitor. He said the refinery would rely heavily on the Corporation’s invaluable knowledge of the refining business in the country to achieve its central objective.

    Dangote aligned his company with the Federal Government’s aspiration to ensure adequate in-country refining capacity, stating that on completion the refinery would dedicate 53 per cent of its projected 650,000 barrels per day (bp) refining capacity to the production of petrol.

    “The most important thing for us is to see how we can partner with NNPC, it is not to see how we can compete with NNPC. We would like NNPC to be part of us and we also want to be part of NNPC.  I think that is the only way we can achieve a win-win situation,” he said.

  • OPEC: Dangote Refinery will boost world crude refining, output stability

    The Organisation of Petroleum Exporting Countries (OPEC) has expressed confidence that the Dangote Oil Refinery has prospects of driving world crude oil refining capacity increase, especially in Africa by 2020 and stabilising world oil production.

    In the current edition of its World Oil Outlook (WOO), OPEC said Dangote Refinery, which is the first privately owned and operated refinery in Nigeria, will refine as much as 650,000 barrels of crude oil per day at installed capacity.

    According to the oil cartel, the current total world oil production in 2019 averaged 80,622,000 barrels per day, and approximately 68 per cent, is coming from the top 10 countries, and an overlapping 44 per cent comes from the 14 current OPEC members.

    OPEC said the world is expecting some capacity expansion from Nigeria by 2020, either through the rehabilitation of existing refineries – in part to raise their utilisation rates, or through grassroots projects, like the Dangote Oil Refinery.

    It said: “Last year’s World Oil Outlook hinted that, in Africa, ‘new projects could improve the situation somewhat toward the end of the period’. This year, increasing confidence that the Dangote project in Nigeria will go ahead is indeed changing the picture.

    “Allowing for some uncertainty in the project’s start-up timetable, incremental potential in Africa is expected to continue to lag incremental demand-based requirements through 2020, after which the potential is for a balance or excess requirements.

    “A deficit of around 0.2 million barrels per day (mb/d) in 2019 to 2020 is estimated to swing to an excess of around 0.3 mb/d by 2022 to 2023. It must be borne in mind that this regional outlook is unusual in that it hinges largely on a single project.”

    OPEC said the completion of the project would reduce the importation of petroleum products in West Africa.

    “Since the project is in West Africa, its implementation does not necessarily alter the situations in North and East/South Africa. What should happen, especially in West Africa, is a reduction in the need and opportunity for product imports,” it added.

    According to OPEC, in Africa, there are some 50 listed refining projects, which, if all built, would add nearly 5mb/d of new refining capacity to the continent.

    The organisation noted that in recent WOOs, the proportion of projects considered firm has generally been low. For example, 0.4 mb/d for the 2017 to 2022 period in WOO 2017.

    “This year, the outlook represents a significant reversal from recent history. For the first time in many years, projected firm additions at 1.1 mb/d exceed regional demand growth for 2018 to 2023 at 0.7 mb/d.

    “This change relates primarily to one project in Nigeria now under construction. Recognising that this one major project is in West Africa, the prospects for North and East/South Africa continues to be for further increases in regional net product imports.

    “It must be borne in mind that this regional outlook is unusual in that it hinges largely on a single project. Moreover, since the project is in West Africa, its implementation does not necessarily alter the situations in North and East/South Africa. What should happen, especially in West Africa, is a reduction in the need and opportunity for product imports,” it said.

    Reacting to the OPEC position, the Group Executive Director, Strategy, Portfolio Development and Capital Projects, Dangote Industries Limited, Mr. Devakumar Edwin, said the global oil cartel was correct in its estimation and that all hands were on deck to deliver the refinery on time.

    The director noted that Dangote Group’s current refining and petrochemicals project could meet 100 per cent of the domestic requirement of all liquid petroleum products (gasoline, diesel, kerosene and aviation jet), leaving the surplus for export in line with the OPEC expectation.

    He said this high volume of premium motor spirit (petrol) output from Dangote Refinery would transform Nigeria from a petrol import-dependent country to an exporter of refined petroleum products.

    Edwin said Dangote was also building the largest fertiliser plant in West Africa with capacity to produce 3.0 million tonnes of urea per year as part of the gigantic economic transformation project.

    He added that the Dangote Fertiliser complex consists of ammonia and urea plants with associated facilities and infrastructure.

  • Dangote Refinery: New highway coming for oil tankers, says Sanwo-Olu

    THE Lagos State All Progressives Congress (APC) governorship candidate, Mr Babajide Sanwo-Olu, has allayed the anxiety among some residents of Lekki-Epe axis over the imminent traffic gridlock the operations of Dangote Refinery will bring to the area.

    To tackle any consequent gridlock, Sanwo-Olu said his campaign team had started discussions with Dangote Group and other developers in the area on the need for partnership to build a dedicated carriageway for trucks.

    He said this would open between Lagos and Ogun states.

    The APC candidate stated this in Yaba during his consultative meeting with members of Favourites Club of Nigeria.

    Sanwo-Olu was accompanied to the event by his running mate, Dr. Obafemi Hamzat.

    The refinery project, which is said to be nearing completion, is located in Ibeju-Lekki Local Government Area of Lagos State.

    After completion, the residents fear there could be more pressure on the expressway due to the anticipated influx of heavy-duty trucks to the area, which may compound the traffic situation.

    But Sanwo-Olu said his government would immediately respond to the apprehension, if elected.

    The APC candidate promised that there would be an alternative route for oil tankers and trucks that would ply the site of the refinery.

    He promised commuters on Lekki-Epe Expressway that the road would not be affected by the refinery’s activities.

    Sanwo-Olu said: “We have been hearing people say that the Lekki-Epe Expressway would be impassable when the Dangote Refinery starts operation. We are not going to deny that there would be pressure on this important highway. But we have started to respond to this anxiety and we are already in talks with Dangote Group and developers around the axis to create a new dedicated highway for the trucks that will be plying the route.

    “Adding more pressure to the Lekki-Epe Expressway would compound the traffic situation on that road. The sensible thing to do is for us to have another highway for trailers that will be going to the refinery. This highway should lead to Ogun State from where the trucks can go to other parts of the country. This new route would be a big relief for the residents and businesses in Ajah and Lekki.”

    Reducing traffic jams in Lagos, Sanwo-Olu said, is one of cardinal programmes of his administration, if elected.

    The APC candidate said his government would also welcome ideas from the public, promising to implement any solution-based initiative that would engender free flow of traffic in the state.

     

     

  • Dangote Refinery to boost Africa’s economy, says Ghanaian President

    The completion of the Dangote Refinery and other modular refineries in Nigeria will bring relief to Nigeria and other African countries suffering from sloppy economic situations caused by by price instability.

    The President of Ghana, Nana Akufo-Addo, who made this known at a forum in Egypt, said his country was already anxiously waiting for the completion of the Dangote Refinery to save his government from economic distortion caused by massive importation of petroleum products from Europe.

    Also speaking, the Technical Adviser to the President of Dangote Group on Refinery and Petrochemicals, Babajide Soyode, said the completion of Dangote Refinery and other modular refinery projects in Nigeria, would culminate in the integration of the downstream industries, lower cost of business and stabilise the prices of petroleum products across the African sub-region.

    Soyode, who spoke during a panel session on ‘Refining, Transportation and Petrochemicals Forum’, at the just-concluded 2019 Nigeria International Petroleum Summit in Abuja, emphasised the need for the Federal Government to fully deregulate the downstream sector.

    He said: “By the time Dangote completes the largest single train refinery, in addition to what other investors are doing, Nigeria will have more than enough petrol for domestic use and for export,” stressing the need for government to allow the private sector run the downstream industry.

    Soyode said the refinery will save Nigeria from importation of refined products, which would help to boost the value of the naira, saying there is no need for the Federal Government to continue to subside petrol.

  • ‘Dangote Refinery’ll not sell petrol at regulated price’

    The President of Dangote Group, Alhaji Aliko Dangote, has said premium motor spirit (PMS) or petrol that will be refined from Dangote Refinery will not be sold at Federal Government’s regulated price.

    This ends the speculation about how much the pump price petrol from the first private refinery will attract when it begins operation next year.

    Dangote spoke on the sidelines of the visit of Central Bank Governor Godwin Emefiele to the refinery in Lagos.

    Dangote said though the plan is not to concentrate on export entirely, he noted that petroleum products from the refinery will be sold at export rate.

    He said it is the duty of the Federal Government to determine the price of fuel, adding that he doubts whether fuel subsidy will continue but if it does, the government can engage the company to find a mid-ground on how to tackle the issue of subsidy.

    He said: “We are not here to concentrate on export but pricing of products depends entirely on the government. If there will be subsidy, which I doubt very much, that is the job of government not the job of Dangote to determine what the price will be. But price of our export is what we sell, which will depend on what the market is internationally, and locally if there will subsidy, the government will carry that responsibility and not us. Government has to engage us and see how they can find a mid-ground on that.”

    On job creation, Dangote said the refinery and petrochemical project is  transformational. Considering that Nigeria depends on importation to meet its fuel consumption needs and the attendant huge subsidy to keep pump price at regulated price of N145 per litre, he said the project will create massive jobs.

    According to him, most filling stations don’t sell fuel because of lack of fuel in view of issues around importation, adding that when the refinery begins operation, it will put these filling stations and their workers back to work.

    He said: “Currently, more than 26,000 people are working on the project and at the height of the project, the number of workers will soar to about 80,000 people and there will be more than 50,000 workers living internally in the company.”

    Emefiele promised the apex bank’s assistance to other refineries’ licencees whose banks can vouch for their credit worthiness.

    Emefiele said:  “CBN’s support depends on the company’s capacity. I have not seen any other person that has received government licence to set up a refinery.  In any case, you don’t come directly to CBN, you have to go through your bank and your bank has to assess your capacity to be able to take on the project.

    “My suggestion is that if there are people that have interest in CBN’s support, they should go to their banks and if their banks are able to display their credit worthiness to be able access such facility, CBN is ready to support them in naira and dollar that they need to import equipment that will enable them conduct their businesses.

    “I have not seen any, if I see any through their banks, I can assure they will receive this kind of support Dangote got from CBN.”

    The CBN supported Dangote Refinery, which will cost $9 billion (N75 billion) and the fertiliser plant which will cost $2 billion with N50 billion. The apex bank chief also stated that the refinery and petrochemical project is funded by 60 per cent of Dangote’s equity with the remaining 40 per cent funded by debts from local and foreign banks and CBN’s support.