Adedapo Adesanya
By Adedapo Adesanya
The Dangote Refinery, Nigeria’s privately-owned new mega-refinery, will begin domestic deliveries of Premium Motor Spirit (PMS), popularly known as petrol, in May 2024.
According to Bloomberg, the news of the anticipated petrol supply to the Nigerian market was confirmed by the firm’s Executive Director, Mr Devakumar Edwin.
If this happens, it would help wean Nigeria, which is Africa’s most populous country and largest crude oil producer of costly petroleum imports.
Despite its top oil producer status, Nigeria imports almost all its fuel due to lack of refining capacity.
The 650,000 barrels per day and $19.5 billion facility built outside Lagos by Africa’s richest man, Mr Aliko Dangote, on Tuesday also delivered its first petroleum products, diesel and aviation fuel.
Mr Edwin, confirming the shipping of diesel and jet fuel into the local market, said, “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.”
“Ships load a minimum of 26 million litres, though we try to push for 37 million litres vessels, for ease of operations,” he added.
Mr Abubakar Maigandi, the president of the Independent Petroleum Marketers Association of Nigeria (IPMAN) said the diesel will be sold by marketers at an agreed price of N1,225 per litre following a bulk purchase agreement, before putting their mark-up.
On its part, the Depots and Petroleum Products Marketers Association of Nigeria (DPPMAN) said its members were seeking letters of credit to buy petroleum products from Dangote.
According to Mr Femi Adewole, the association’s executive secretary, upon approval and disbursement, it would start lifting products.
“Our members are discussing with banks and these talks have reached advanced stages, when we have our letters of credit, we will begin lifting products,” he stated.
Dangote Petroleum Refinery had earlier in January commenced production of diesel and aviation fuel.
Announcing the commencement in a statement, the company said the refinery had received six million barrels of crude oil at its two SPMs located 25 kilometres from the shore.
The first crude delivery was done on 12 December 2023, and the 6th cargo was delivered on 8 January.
The first cargo that arrived at the plant was from Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), one of the largest trading companies in Nigeria and globally, trading over 8 million barrels of crude oil daily.
