Dangote Refinery Begins Sale of Petroleum Products: A Milestone Achievement

In a significant development for the Nigerian petroleum industry, Dangote Refinery has commenced the supply of petroleum products to the local market, as reported by Reuters. This milestone was confirmed by Devakumar Edwin, the Executive Director of the Dangote Group.

“We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel,” Mr. Edwin stated, underlining the robust operational capacity of the refinery.

Abubakar Maigandi, President of the Independent Marketers Association of Nigeria (IPMAN), shed light on the pricing strategy for diesel in the local market, revealing a consensus among local oil marketers on a price of 1,225 naira ($0.96) per litre following a bulk purchase agreement.

The association, boasting control over approximately 150,000 retail stations across Nigeria, is poised to leverage this agreement for widespread distribution.

Additionally, smaller depots and petroleum marketers are actively seeking letters of credit to procure petroleum products from Dangote Refinery. Femi Adewole, the association’s Executive Secretary, expressed optimism about the advanced stages of discussions with banks, indicating imminent product procurement once these negotiations conclude.

Dangote Petroleum Refinery had previously commenced production of diesel and aviation fuel in January, marking a pivotal moment in its operational journey. The refinery received six million barrels of crude oil at its two Single Point Mooring (SPM) terminals located 25 kilometres from the shore.

The inaugural crude delivery on December 12, 2023, followed by subsequent deliveries, underscores the refinery’s commitment to meeting the nation’s energy demands. Notably, the first cargo from the Agbami crude grade, facilitated by Shell International Trading and Shipping Company Limited (STASCO), set the tone for future operations.

Further bolstering its supply chain, the refinery received an additional one million barrels of bonny light crude from the Nigeria National Petroleum Company (NNPC Ltd), signaling a strategic collaboration to enhance domestic energy production.