Dangote Refinery tests run fuel production, full operations begin September

The Dangote Refinery is set to overturn the decades-long Europe-to-Africa fuel trade and reduce Nigeria’s reliance on imported refined products.

Dangote Refinery, the world’s largest single-train refinery, has commenced test run operations for the production of Premium Motor Spirit (PMS), otherwise known as petrol.

This is according to a Reuters report, which cited a note by industry monitor IIR Energy.

According to the report, the 650,000-barrel-per-day refinery is expected to commence full operations and rollout of petrol in mid-September after missing several deadlines.

The $20 billion facility built by Africa’s richest man Aliko Dangote has only produced diesel and other distilled fuels.

Earlier in the year, Dangote announced that petrol deliveries from the refinery would start in May but that didn’t come to fruition.

The company later shifted the rollout date to July and, subsequently August, all to no avail due to hiccups in crude oil supply to the plant.

“It is possible that there could be further extensions,” IIR said in a note to clients.

This development comes after a Federal Government committee tasked to ensure the implementation of crude oil sales to local refineries in naira reached an agreement with Dangote Petroleum Refinery for the rollout of petrol in September this year.

Recall the Federal Government said it would commence the sale of crude oil to Dangote Refinery and other local refineries from October 1, 2024.

This was disclosed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during a meeting with the Implementation Committee in Abuja.

“The first PMS delivery from Dangote is expected next month under existing agreements,” the Executive Chairman of the Federal Inland Revenue Service, Dr Zacch Adedeji, and the Chairman of the Technical Sub-Committee said at the meeting.