Dangote Refinery to Start ULSD and Petrol Production in June and July
The Dangote refinery, with a capacity of 650,000 barrels per day, is set to begin production of 10 ppm sulphur diesel (ULSD) during the week of June 17, with petrol production expected to follow by July 10.
Aliko Dangote shared this update in an interview with Channels Television on June 11. These timelines mark a slight delay from the previous guidance provided by the company’s vice president for oil and gas, Devakumar Edwin, who had projected diesel exports and local gasoline sales to commence this month.
In the interview, Dangote highlighted the challenges faced by the West African diesel market, which has been inundated with low-quality oil products with high sulphur content ranging from 2,000ppm to 3,000ppm. He emphasized the refinery's commitment to producing high-quality diesel to address these issues.
The Nigerian Senate President, Godswill Akpabio, also praised Belgium's decision to ban the export of low-quality fuels. Despite Belgium reducing its share of Nigeria's seaborne gasoil and diesel imports to 9% this year from 22% last year, it has increased its share of finished-grade gasoline imports to 35% from 29% in 2023.
The Dangote refinery has been producing around 680-700ppm gasoil for local and international markets. Recent gasoil loadings of at least 20,000 tons fob Dangote were offered at significant discounts of $30-$35 per ton compared to front-month Ice gasoil futures, reflecting stricter pricing terms and the requirement for upfront payment in dollars.
The refinery’s petrol production is set to begin between July 10 and 15. Since commencing crude processing in January, the absence of gasoline production has led to exports of 720,000 tons of naphtha, a key gasoline blending component, according to Kpler.
The refinery is equipped with substantial storage capacity, including three straight-run naphtha tanks with a combined capacity of 90,000m³, three hydrotreated heavy naphtha tanks with a combined capacity of 90,000m³, and three hydrotreated light naphtha tanks with a total capacity of 30,000m³.
These developments mark significant progress for the Dangote refinery in enhancing Nigeria's refining capacity and improving the quality of oil products in the region.
