The Vice President of Oil and Gas at Dangote Industries Limited (DIL), Devakumar Edwin, has given the assurance that Dangote Refinery will commence the production of Premium Motor Spirit (PMS), also known as petrol, this month.
Edwin disclosed this when international financial analytics corporation S&P Global’s officials visited the Dangote Refinery at Ibeju-Lekki, Lagos as part of its sovereign credit ratings assessment of Nigeria.
He reiterated that as earlier promised, the company will start producing petrol this month (July).
According to him, the move will harness Africa’s abundant crude oil resources to produce refined products locally, adding that the company aims to catalyse a virtuous cycle of industrial development, job creation, and economic prosperity.
Edwin also noted that products from the $20 billion facility are of high quality and meet international standards, saying that it can meet 100 per cent of Nigeria’s demand for petrol, diesel, kerosene, and jet fuel, with surpluses available for export.
On its part, S&P Global said the 650,000 barrels per day refinery could resolve Nigeria’s foreign exchange (forex) issue and its huge pressure on the naira, while accelerating the country’s economic development.
The ratings agency’s team was accompanied on the visit by officials from the Federal Ministry of Finance.
Director and Lead Analyst, Sovereign and International Public Finance Ratings, S&P Global Ratings, Ravi Bhatia, who led the delegation to Lagos, said the Dangote Refinery would transform Nigeria into a net exporter of petroleum products.
“It is a very impressive facility, able to process 650,000 barrels a day when in full capacity. It is the largest single-train refinery complex in the world. It came out quite quickly,” Bhatia said after touring the refinery for more than four hours.
“Nigeria is a big exporter of crude but has issues with importing refined fuels. So, there is a gap in the market where crude can be refined in Nigeria, save money that way, and potentially save some foreign exchange. This will be positive for the economy in the medium term. It looks positive from our assessment.”
The S&P team commended the President of Dangote Industries Limited, Aliko Dangote, for integrating advanced technologies and quality control measures, including a state-of-the-art Central Control Unit for ensuring the smooth automation of operations.
Other members of the team of the international ratings agency include the Associate Director, Sovereign Ratings, Maxmillian McGraw; Director, Corporate Ratings, Omegu Collocott; Senior Analyst, Bank Ratings, Charlotte Masvongo, and Director, Financial Services, Samira Mensah.
Currently operating at 350,000 barrels per day capacity, Edwin said the refinery is slated to scale up to at least 500,000 barrels per day capacity by July/August, commencing the refining of petrol and ultra-low sulfur diesel.
He noted that the refinery, designed to process a wide range of crudes, conforms to Euro V specifications. In addition, it is designed to comply with the US EPA, European Union (EU) emission norms, the Department of Petroleum Resources (DPR) emission/effluent norms, and the African Refiners and Distribution Association (ARDA) standards.
While noting that most refineries were built by foreign companies, he said it is a thing of pride that a Nigerian company designed and built the world’s largest single-train refinery complex; handling its Engineering, procurement, and acting as the Construction (EPC) contractor.
Dangote refinery also incorporates a self-sufficient marine facility capable of handling the world’s largest vessels.
“The refinery can produce the best quality products in the world, Euro V grade. It is one of the energy-efficient refineries and it is highly environmentally friendly. It is sophisticated with a high level of automation. The largest single train refinery in the world is 100 per cent designed, engineered, and constructed by a Nigerian company as EPC contractor,” he said.
Nigeria, one of the world’s leading oil-producing countries, exports its crude oil for refining and subsequently imports refined products due to a lack of operational refineries. Nigeria imports an estimated 50 million litres of petrol daily to meet domestic demand.
According to data from the National Bureau of Statistics (NBS) in its Foreign Trade Statistics for the Fourth Quarter of 2023, Nigeria spent approximately ₦12tn importing petroleum products in 2023, including petrol. This figure marks an 18.68 per cent increase compared to the ₦10tn spent on fuel imports in 2022.
