[ad_1]
Dangote refinery will be fully reliant on Nigerian crude by the end of 2025, according to Devakumar Edwin, vice president of Dangote Industries.
The 650,000-barrel-per-day refinery, owned by Aliko Dangote, Africa’s richest man, sourced half of its crude supply from local producers in June. That share is expected to grow, as more Nigerian suppliers choose to sell directly to the refinery rather than meet export obligations, Bloomberg reported.
“We expect some of the long-term contracts will expire. Personally, and as a company, we expect that before the end of the year, we can transition 100% to local crude,” Edwin said.
The $20 billion Dangote refinery, which began operations in 2024 after years of delays, is now producing aviation fuel, diesel, gasoline, and naphtha. Ranked by Bloomberg as having a higher capacity than the ten largest refineries in Europe, it stands as a major milestone for Nigeria and Africa’s energy sector.
From import dependence to net fuel exporter
Though still ramping up to full capacity, the refinery has already transformed Nigeria into a net exporter of petroleum products. However, meeting initial demand required large volumes of imported crude, as local traders were unable to supply sufficient quantities.
Since opening, the Dangote refinery has sourced crude from countries including Brazil, Angola, Ghana, and Equatorial Guinea. Improving coordination between the refinery, local oil traders, and the Nigerian government is expected to ensure a more consistent supply of domestic crude, according to Devakumar Edwin.
Still, a significant boost in local output will be needed in the coming months. In June, 53% of the refinery’s crude came from Nigerian producers, while 47% was imported from the U.S. The plant is currently processing around 550,000 barrels of crude per day, Edwin said.
[ad_2]
Source link
