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In a major step towards boosting Nigeria’s domestic refining capacity and attaining energy security (self-sufficiency), Dangote Petroleum Refinery and Petrochemicals plant has purchased 1 million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO), one of the largest trading companies in Nigeria as well as globally, trading over 8 million barrels of crude oil per day.
The STASCO cargo contained 1 million barrels from Agbami and sailed to Dangote Refinery’s Single Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks.
President of Dangote Group, Mr. Aliko Dangote stated: “We are delighted to have reached this significant milestone. This is an important achievement for our country as it demonstrates our ability to develop and deliver large capital projects. Our focus over the coming months is to ramp up the refinery to its full capacity. I look forward to the next significant milestone when we deliver the first batch of products to the Nigerian market.”
This comes as a huge relief, after series of delays since its official launch in May, with the lack of domestic crude feedstock hindering product manufacturing.
However, a tanker carrying a 1,000,000 barrel cargo of Nigeria’s Agbami crude berthed at Dangote’s offshore crude receiving terminal in Lekki at about 7pm on December 7, marking the initiation of crude supplies for the refinery’s operations.
The refinery was built to take crude through its two SPMs located 25 kilometres from the shore and to discharge petroleum products through three separate SPMs. In addition, the refinery has the capacity to load 2,900 trucks a day at its truck loading gantries.
The tanker chartered by the Nigerian National Petroleum Corporation (NNPC), symbolises the initial crude supply to Dangote’s state-of-the-art refinery as it gears up to initiate production.
It is estimated that the Dangote Refinery will cater to over 12% of Africa’s product demand, potentially reducing petroleum imports across the continent by 36%.
Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor stated: “We welcome the startup of a refinery that is designed to produce gasoline, diesel, and low-sulphur fuels for Nigeria and across West Africa and are happy to be enabling it.”
The NNPC, owning a 20% stake in the refinery, recently entered an agreement to supply 6 million barrels of crude oil as feedstock to the Dangote refinery in December, aiming to jumpstart operations.
Agbami, operated by Chevron, stands as one of Nigeria’s major deepwater developments, boasting a daily output of approximately 100,000 b/d in the central Niger Delta.
Renowned for its light sweet crude qualities with specific gravity measuring 47.9 API and sulphur content of 0.04%, Agbami yields significant proportions of naphtha and kerosene.
Further shipments from various Nigerian offshore fields to the refinery have been chartered by NNPC, signifying the beginning of a series of scheduled crude supplies throughout December.
Upon reaching full operational capacity, the facility is anticipated to produce a daily output of 327,000 bpd of gasoline, 244,000 bpd of gasoil/diesel, 56,000 bpd of jet fuel/kerosene, and 290,000 mt/year of propane/LPG.
This much anticipated shift is expected to transform Nigeria’s oil industry landscape.
While Dangote officials foresee an initial output of 370,000 bpd, primarily focusing on jet fuel and diesel production, industry analysts expect the refinery to achieve its full operational capacity around mid-2025.
Dangote had earlier said in an interview in November, that the refinery would start with refining Nigerian crude.
He said the refinery’s first priority is to supply petrol to Nigeria before exporting elsewhere, including the West African region.
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