By Adedapo Adesanya
Dangote 650,000-barrel-per-day refinery is undergoing test runs for the production of Premium Motor Spirit (PMS), also known as petrol, with full operations expected by mid-September.
This is according to a note by an industry monitor, IIR Energy.
The $20-billion Dangote refinery, built by Africa’s richest man, Mr Aliko Dangote, on the outskirts of Lagos, began operations in January after years of delays.
However, it has not been able to produce petrol, which is one of the most expected commodities from the project.
Dangote Refinery has so far only produced diesel and other distillate fuels.
The refinery had earlier said that petrol deliveries from the refinery would start in July, but it has not been able to get the necessary feedstock.
Before that the refinery had aimed to start making the motor fuel by May, according to its owner, Mr Aliko Dangote.
IIR also said in the note to clients that it is possible that there could be further extensions
Once fully operational, the refinery is set to change the Europe-to-Africa fuel trade and reduce Nigeria’s reliance on imported refined products.
Also, the federal government’s committee which was set up to ensure the implementation of crude oil sales to local refineries in Naira reached an agreement with the refinery for the rollout of petrol, in September this year.
The Federal Executive Council (FEC) had on July 29 okayed President Tinubu’s proposal for NNPC to halt the sale of crude oil to local refineries in foreign currency and opt for the Naira.
The Council approved that the 450,000 barrels meant for domestic consumption be offered in Naira to Nigerian refineries, using the Dangote refinery as a pilot.
The move is to ensure the stability of the pump price of refined fuel and the dollar-naira exchange rate.
Reports show that Dangote Refinery, at the moment, requires 15 cargoes of crude oil yearly but it has no been able to get enough despite getting cargoes from the US and other sources.
