Dangote Refinery Begins Petrol Production Test-Run

The 650,000-barrel-per-day Dangote refinery is undergoing test runs for Premium Motor Spirit or petrol production, with full operation expected by mid-September.

This was revealed by Reuters quoting a note by industry monitor IIR Energy.

The $20bn refinery built by Aliko Dangote, which has so far only produced diesel and other distillate fuels, had earlier said that petrol deliveries from the refinery would start in July. Before that, the refinery had aimed to start making the motor fuel by May.

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

Once fully operational, the refinery is set to upend the Europe-to-Africa fuel trade and reduce Nigeria’s reliance on imported refined products.

Earlier in the month, the Federal Government’s committee which was set up to ensure the implementation of crude oil sales to local refineries in naira, had reached an agreement with the Dangote Petroleum Refinery for the rollout of petrol in September this year.

The report stated that the Federal Government also disclosed that the sale of crude oil to Dangote Refinery and other local refineries will commence on October 1, 2024.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced this during a meeting with the Implementation Committee in Abuja.

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