Dangote’s 650,000 b/d refinery’s first crude feedstock has reached the country, signifying that fuel production at the $19 billion facility is poised to commence after years of delays.
According to reports, the OTIS tanker, carrying a 950,000 barrel cargo of Agbami crude, arrived on Wednesday and was discharged at the refinery’s terminal on Thursday, marking the initiation of operations for Dangote’s giant new plant.
A West African oil trader revealed that the Suezmax tanker, chartered by the state-owned Nigerian National Petroleum Company, is the first of Dangote’s initial crude supplies as the giant new plant starts to ramp up operations.
Despite the refinery being officially completed in May, it had not produced any oil products due to a lack of domestic crude feedstock.
However, the Nigerian National Petroleum Company, which holds a 20 per cent stake in the refinery, recently agreed to supply 6 million barrels of crude oil as feedstock in December.
Operated by Chevron, the Agbami crude is sourced from one of Nigeria’s largest deepwater developments, pumping around 100,000 b/d in the central Niger Delta.
The Dangote refinery faced repeated delays since its unveiling in 2013, despite most key units being installed in 2019.
Once fully operational, the refinery’s crude distillation unit is designed to process 12 crudes simultaneously, including three Nigerian crude grades: Escravos, Bonny Light, and Forcados.
The plant is expected to yield 327,000 b/d of gasoline, 244,000 b/d of gasoil/diesel, 56,000 b/d of jet fuel/kerosene, and 290,000 mt/year of propane/LPG.
