Crude Oil
NNPC To Supply Four Crude Oil Cargoes to $20bn Dangote Refinery
The Nigerian National Petroleum Company Ltd (NNPCL) has scheduled to supply four crude oil cargoes, (four million barrels), under its February programme to the $20 billion Dangote refinery.
The four cargoes are expected to increase total supply to about one billion barrels of crude as six million barrels have already been delivered to the plant.
This, according to Reuters will be adequate for the plant to test run its operations in the coming weeks.
It stated: “OPEC member Nigeria currently relies on imports for most of the fuel it consumes, but the Dangote refinery is expected to make it self-sufficient and able to export fuel to neighbours in West Africa, potentially transforming oil trading in the Atlantic Basin.
“Dangote received 1 million barrels of Nigeria’s Agbami crude on Monday, lifting total volumes received since December to 6 million barrels.
“NNPC supplied the 650,000 barrel per day (bpd) plant with four of the cargoes, two of the sources said.”
Dangote’s group executive director for strategy, portfolio development and capital projects, Edwin Devakumar, said the company did not request cargoes from NNPC for January.
“We are starting the refinery and if we continue to line up cargoes our inventory will build up as well as costs,” he said. “If everything goes well, we will run 8-10 days of operation then we will begin to line up cargoes.”
The refinery is also looking at crude supplies from other countries, he said without disclosing further detail.
One of the sources said that the refinery has nominated four NNPC cargoes for February.
A second source said that NNPC wanted to wait for the plant’s test runs before sending more oil.
Initial processing capacity is expected to reach 350,000 bpd, with the aim of ramping up to full capacity by the end of the year, Dangote said.
The Managing Director of Dangote Ports Operations, Mr. Akin Omole had said: “Once the 6 million barrels are fully delivered, it will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and Liquefied Petroleum Gas (LPG) before subsequently progressing to the production of Premium Motor Spirit (PMS).”
According to the company, “Dangote Oil Refinery is 650,000 barrels per day (BPD) integrated refinery project under construction in the Lekki Free Zone near Lagos, Nigeria. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility.”
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