Dangote Refinery and Petrochemical Company will, in June this year, shut its 204,000 barrels per day gasoline-making unit for 30-day maintenance.
The shutdown is expected to start on June 1, according to industry monitor International Info Resources (IIR).
The 650,000 bpd refinery built by Nigerian billionaire Aliko Dangote in Lagos began processing crude into products, including gasoil, naphtha, and jet fuel, in January 2024 and started producing gasoline in September.
It has yet to reach full capacity, with a refinery official saying it was operating at 85 per cent capacity in early February.
After the maintenance, Dangote’s gasoline production could increase if the plant is able to ramp up in time, two Europe-based oil trading sources have said.
Dangote’s maintenance could prompt European gasoline exports to West Africa, one of the sources added.
The refinery began discussions with the Nigerian National Petroleum Company Ltd earlier this month to extend its crude supply contract.
Recall that the Federal Executive Council, under the leadership of President Bola Tinubu, had in September last year approved the sale of crude to local refineries in Naira and the corresponding purchase of petroleum products in Naira.
This initiative was to help reduce pressure on the naira, eliminate unnecessary transaction costs, and improve the availability of petroleum products in the country.
There had been reports that the NNPC had terminated the agreement and that the alleged termination would raise the price of petrol.
But Soneye said in the statement made available to THE WHISTLER that the sale of crude oil in Naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025. Discussions are currently ongoing towards placing a new contract.
Under this arrangement, he said the NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024.
In aggregate, he added that the NNPC has made over 84 million barrels of crude oil available to the refinery since its commencement of operations in 2023.
Before the deal, the Dangote facility reported difficulties securing crude supplies, and it received US crude grades, including WTI Midland.
The refinery has been exporting refined products, including fuel oil, jet fuel, naphtha, and gasoil, mainly to other African countries and Asia since March 2024, according to shipping trade analytics firm Kpler.
Nigeria’s gasoline imports have dropped since the Dangote refinery started producing the road fuel in September, reaching a record low of 112,000 bpd in February, from 372,000 bpd in February 2024, Kpler data show.
Dangote Refinery To Shut Gasoline-Making Unit For 30 Days – Report is first published on The Whistler Newspaper
Source: The Whistler
