NIGERIA: In an interview with S&P Global Commodity Insights, the Dangote Group Executive Director, Devakumar Edwin, shared that the Dangote refinery is expected to start operating in October.
He stated that the launch will be in phases, beginning with refining 370,000bpd of diesel and jet fuel as the first shipment of crude is expected to land by the end of September. The director also said that the second phase, which is scheduled to begin by the end of 4Q23, will see the commencement of the ramp-up to 650,000bpd, with gasoline accounting for half of that volume.
He shared that crude supply in the first phase will come from offshore oil trading houses because the Nigerian National Petroleum Corporation (NNPC) cannot supply the refinery until November as they had committed crude on a forward basis to other clients. However, post November, the refinery should run on exclusively Nigerian crude. He clarified that crude from the NNPC will be purchased in US dollars, however, the NNPC will supply some crude at a cheaper rate due to its equity stake in the refinery.
