The 650,000-barrel-per-day Dangote refinery in Nigeria is currently undergoing test runs for the production of Premium Motor Spirit (PMS), commonly known as petrol, with full operations expected to commence by mid-September.
This update was revealed in a note by industry monitor IIR Energy, as reported by Reuters.
The $20 billion refinery, developed by Africa’s richest man, Aliko Dangote, has so far only produced diesel and other distillate fuels. Initially, the refinery had planned to start petrol production in May, with deliveries expected by July. However, these timelines were delayed. IIR Energy noted that “further extensions are possible” as the refinery continues its test runs.
Once fully operational, the Dangote refinery is poised to transform the Europe-to-Africa fuel trade and significantly reduce Nigeria’s dependence on imported refined products.
In a related development, the Federal Government’s committee, established to oversee the implementation of crude oil sales to local refineries in naira, has reached an agreement with the Dangote Petroleum Refinery for the rollout of petrol in September 2024. The government has also announced that the sale of crude oil to the Dangote Refinery and other local refineries will begin on October 1, 2024.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed this during a meeting with the Implementation Committee in Abuja. At the same meeting, the Executive Chairman of the Federal Inland Revenue Service, Dr. Zacch Adedeji, and the Chairman of the Technical Sub-Committee reported that “the first PMS delivery from Dangote is expected next month under existing agreements.”
