The Dangote Petroleum Refinery, situated in Lagos, Nigeria, has achieved a significant milestone as it begins the production of Automotive Gas Oil (diesel) and JetA1 (aviation fuel).
Seven major oil marketers, including 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail, have registered with the refinery for the lifting and distribution of these refined petroleum products.
This development was confirmed by the Major Oil Marketers Association of Nigeria (MOMAN), whose members have completed the registration process with Dangote Petroleum Refinery. The Executive Secretary/CEO of MOMAN, Clement Isong, stated that once the commercial terms are finalized, major marketers are poised to commence the distribution of fuel produced by the $20 billion facility.
Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) are also engaging with the management of the Dangote refinery to discuss terms of product loading and supply.
The Dangote Petroleum Refinery, with a daily refining capacity of 650,000 barrels of crude oil, covers an extensive area in the Lekki Free Trade Zone. The refinery has received six million barrels of crude oil to date, with the first delivery on December 12, 2023, and the sixth on January 8, 2024. It can load 2,900 trucks per day and adheres to international emission norms and regulatory standards.
The president of the Dangote Group, Aliko Dangote, expressed gratitude for the support received from various entities, including President Bola Tinubu, the Nigerian National Petroleum Company Limited, and regulatory authorities.
He emphasized the significance of the project as a game-changer for Nigeria and highlighted the refinery’s contribution to the country’s ability to develop and deliver large capital projects.
While major oil marketers express readiness to buy and distribute products from the refinery, discussions on commercial terms are underway.
The commencement of production at the Dangote Petroleum Refinery is seen as a positive development with potential implications for fuel prices and market dynamics.
The industry anticipates the refinery’s impact on reducing logistics costs associated with importing fuel and providing a stable supply of petroleum products in Nigeria.
