The operational commencement of the Dangote refinery, valued at $20 billion, has now been initiated
The production phase has commenced at the Dangote Refinery, a project with a cost of approximately $20 billion.
Situated in Nigeria’s commercial hub, the world’s largest single-train refinery initiated its production operations early on Friday.
This development follows the delivery of six million barrels of crude supply to the refinery within this week.
Although the original operational launch was scheduled for June 2023, the refinery, built by Aliko Dangote, received its first crude deliveries late last year, marking a significant step in overcoming delays in the megaproject.
Touted as Africa’s largest refinery of its kind, the 650,000 barrel-per-day Dangote refinery holds the potential to reshape Nigeria’s economy by reducing dependence on fuel imports once fully operational.
In its initial phase, the refinery will focus on producing diesel and aviation fuel before transitioning to petrol output.
Despite being one of Africa’s major oil producers and the continent’s leading economy, Nigeria has heavily relied on imported fuel and diesel due to insufficient refining capacity.
Fuel imports and subsidies had a substantial impact on foreign exchange, especially during periods of dwindling oil revenues and foreign currency shortages.
According to a statement from the company, the Dangote Petroleum Refinery aims to fulfill 100 percent of Nigeria’s refined product requirements, including gasoline, diesel, kerosene, and aviation jet fuel, with the potential for surplus products available for export.
As the Dangote refinery commences production, there are also expectations for the Port Harcourt refinery to initiate its production activities.
Source:
IntelRegion
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