As per Standard and Poor’s’ Global Commodities, S & P, petrol distribution by the Dangote refinery is set to commence in the fourth quarter of 2024.
In a podcast titled ‘Exploring West Africa’s oil product flows in a changing refining landscape’, Kelly Norways, an African energy expert at S&P, revealed this information.
The refinery’s petrol supply is expected to significantly reduce energy imports within the West African sub-region, with potential daily quantities reaching as high as 290,000 barrels between 2024 and 2026.
“While signs of activities are emerging, the spotlight is on the initiation of gasoline production from the project. There is substantial pressure from the Nigerian government to allocate a significant volume of this supply to the domestic market,” Norways noted.
Regarding the timeline for scaling up production, Norways stated, “Commencement of gasoline production remains a matter of debate. Dangote has indicated ambitious timelines, with mentions of gasoline production as early as May. Realistically, our analysts project a more plausible timeline around the fourth quarter of this year.”
Although officially commissioned in May 2023, the Dangote refinery has faced challenges in operating at full capacity. It began receiving crude oil around December and recently started distributing diesel to local marketers in March.
Recently, the refinery made headlines by reducing the diesel price from N1,600 to N1,000 per litre.
Furthermore, the Dangote refinery and oil marketers have hinted at the potential commencement of petrol sales in the upcoming month.