By Adedapo Adesanya
Dangote Oil Refinery and Petrochemicals have reassured the public of the commencement of production of Premium Motor Spirit (PMS) also known as petrol this month.
The Vice President of Oil and Gas at Dangote Industries Limited (DIL), Mr Devakumar Edwin, disclosed this during an onsite visit to the Dangote Refinery at Ibeju-Lekki, Lagos, by S&P Global Ratings as part of its sovereign credit ratings assessment of Nigeria.
He reiterated that as earlier promised, the company will start the production of petrol in July 2024, noting that the move will harness Africa’s abundant crude oil resources to produce refined products locally, adding that the company aims to catalyse a virtuous cycle of industrial development, job creation, and economic prosperity.
Mr Edwin also noted that products from the $20 billion facility are of high quality and meet international standards, saying that it can meet 100 per cent of Nigeria’s demand for petrol, diesel, kerosene, and aviation Jet, with surpluses available for export.
On its part, International financial analytics corporation, S&P Global, described the 650,000 barrels per day refinery as capable of resolving Nigeria’s foreign exchange (forex) issue, and its huge pressure on the local Naira currency, while also catalysing the country’s economic development.
S&P noted that the largest single-train refinery complex in the world, would bolster Nigeria’s oil sector and, more importantly, also have a positive impact on its growing economy.
The Director and Lead Analyst, Sovereign and International Public Finance Ratings, S&P Global Ratings, Mr Ravi Bhatia, who led the delegation to Lagos, said the Dangote refinery would transform Nigeria into a net exporter of petroleum products.
He added that this transformation is expected to boost revenue generation and alleviate the current pressure on the country’s foreign exchange reserves.
“It is a very impressive facility, able to process 650,000 barrels a day, when in full capacity. It is the largest single-train refinery complex in the world. It came out quite quickly. Nigeria is a big exporter of crude but has issues with importing refined fuels.
“So, there is a gap in the market where crude can be refined in Nigeria, save money that way, and potentially save some foreign exchange. This will be positive for the economy in the medium term. It looks positive from our assessment,” Mr Bhatia said after an over four-hour tour of the facility.
The S&P team, accompanied by officials from the Federal Ministry of Finance, commended the President of Dangote Industries Limited, Mr Aliko Dangote, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit ensuring smooth automation of operations.
Currently operating at 350,000 barrels per day capacity, Mr Edwin said the refinery is slated to scale up to at least 500,000 barrels per day capacity by July/August, commencing the refining of petrol and ultra-low sulphur diesel.
He noted that the refinery, designed to process a wide range of crudes including various African and Middle Eastern crudes, as well as US Light Oil, conforms to Euro V specifications and other regulations.
Dipo Olowookere