Dangote Refinery Set To Commence Operation As First Crude Shipment Arrives

Byadulawo

Dec 8, 2023

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According to market sources and tanker tracking data, the first batch of crude feedstock for Dangote‘s 650,000 b/d refinery has arrived in Nigeria.

ADULAWO NEWS recalls that after years of delays, this development signifies that fuel production at the new $19 billion facility is finally ready to commence, Naija News reports.

It was gathered that on December 6, the OTIS tanker loaded a cargo of 950,000 barrels of Agbami crude, which was then discharged at the Dangote refinery terminal on Thursday (yesterday).
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The Suezmax tanker, chartered by the Nigerian National Petroleum Company (NNPC), is the initial supplier of crude for Dangote’s refinery as it begins to ramp up operations.

Despite being officially completed in May, the privately owned refinery has been unable to produce any oil products due to a lack of domestic crude feedstock. However, the NNPC, which holds a 20% stake in the refinery, has recently agreed to provide 6 million barrels of crude oil as feedstock for the refinery in December.

ADULAWO NEWS reports that Chevron, the operator of Agbami, oversees one of Nigeria’s largest deepwater developments, which pumps approximately 100,000 b/d in the central Niger Delta region.
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As stated by Platts ‘ Periodic Table of Oil, Agbami is known for producing light, sweet crude with a gravity of 47.9 API and a sulfur content of 0.04 per cent. This particular crude is renowned in the market for its high yield of naphtha and kerosene.

The PUNCH quoted an oil trader to have said that NNPCL has chartered several additional tankers to transport more crude shipments from offshore fields to the refinery later this month. Despite being unveiled in 2013, the refinery’s startup has faced multiple delays. However, the majority of the key units were installed in 2019.

The crude distillation unit has been specifically designed to handle twelve different types of crude oil simultaneously. Additionally, it has been meticulously engineered to efficiently process three specific Nigerian crude grades, namely Escravos, Bonny Light, and Forcados.
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Upon reaching full operational capacity, this plant is projected to produce a daily output of 327,000 barrels of gasoline, 244,000 barrels of gasoil/diesel, and 56,000 barrels of jet fuel/kerosene.

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