Connect with us

Featured

Dangote Refinery Ramps Up Production With US Crude – REPORT

Published

on

As it ramps up output, the 650,000 barrels per day Dangote Petroleum Refinery is utilizing as much as a third of its feedstock from cheaper oil imports from the United States.

According to a Bloomberg story published on Thursday, the factory has been shipping goods while preparing two units for gasoline (petrol) output, which would bring about the long-awaited revolution of the fuel market in Nigeria and the surrounding area. It credited analysts for this.

Vice President of Refining, Chemicals, and Oil prices at Wood Mackenzie, a consulting business, Alan Gelder stated that “Dangote is going to influence Atlantic Basin gasoline markets this summer and for the rest of the year.”

“That’ll really shake things up when the RFCC comes online because it alters the West African gasoline supply balance,” he continued, referring to the heavier product-upgrading residual fluid catalytic cracking unit.

The average estimate of analysts at WoodMac, FGE, and Citac is that the refinery is operating at roughly 300,000 barrels per day, or nearly half its nameplate capacity.

The complex is expanding to include a full range of products, and it has begun delivering jet fuel, gasoil, and naphtha.

While some analysts anticipate the RFCC to take until the end of the year, Wood Mackenzie anticipates the gasoline-focused units to go online this summer.

Dangote Industries said earlier this month that gasoline deliveries will start in May. A company spokesperson didn’t immediately respond to questions.

“The refinery is already having a sizable impact on product markets even running in its most stripped-back form at minimum rates,” said Ronan Hodgson, an energy analyst at FGE. Units that boost diesel quality will also start up in the coming months.

See also   FIN Insurance Company reports impressive growth in total assets, profits

On Wednesday, The PUNCH reported that the refinery announced a reduction in the price of diesel from N1,200/litre to N1,000/litre, a development that triggered excitement among operators in the downstream oil sector.

Dangote refinery announced this in a statement by its spokesperson, Tony Chiejina.

The statement read in part, “In an unprecedented move, Dangote Petroleum Refinery has announced a further reduction of the price of diesel from N1200 to N1,000/litre.

While rolling out the products, the refinery supplied at a substantially reduced price of N1,200/litre three weeks ago, representing over 30 per cent reduction from the previous market price of about N1,600/litre.

“This significant reduction in the price of diesel at Dangote Petroleum Refinery is expected to positively affect all the spheres of the economy and ultimately reduce the high inflation rate in the country.”

Bloomberg reported on Thursday that as much as a third of the oil shipped into the giant refinery so far has been US-grade WTI Midland, according to shipping information compiled by the media house.

This, according to the report, might likely continue as long as the foreign oil undercuts the price of local supplies. It, however, stated that Dangote could be about to change that.

Nigeria released new rules earlier this week that will compel its oil producers to sell crude to domestic refineries in a bid to reverse the country’s reliance on imported refined products. It’s not yet clear how much each refinery will need to take.

The decision by the Federal Government to sell crude to indigenous refiners came as the government also stated that the refineries could now purchase crude using the local currency – naira, or the United States dollar.

See also  Pogba bags four year ban for doping

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Updates

NDDC, Army, DSS Strengthen Synergy For Development, Security

World Bank Approves $2.25 Billion Support Package for Tinubu’s Reforms

EURO 2024 Kicks Off In Munich

Strengthening Nigeria’s Electoral Jurisprudence, By Dr Sonny Onyegbula

Mali Sacks National Team Coach, Eric Chelle

NFF To Hire Foreign Technical Adviser For Super Eagles

Tinubu Receives Bill Proposing Return to Regional Government

Nigerian Troops Neutralize 197 Terrorists, Apprehend 310 In One Week

Historic Egyptian Manuscript Sold At £1.25 Million In London

Israeli Forces Advance Deeper into Rafah, As Diplomatic Efforts Falter

Subscribe to DDM Newsletter for Latest News