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November 17th , 2024

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WHY DANGOTE REFINERY FAILED

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Aside from Dangote Refinery, five additional modular refineries are impacted by the lack of crude oil for output.

In September, it was reported that the Dangote Refinery, with a capacity of 650,000 barrels per day, would receive its first shipment of oil and begin operations in October.

The refinery was supposed to start producing up to 370,000 barrels per day of diesel and jet fuel in October, but that didn't happen.

According to The Punch, the Dangote refinery's delayed output of refined petroleum products is owing to a crude supply deficit at the plant.

According to reports, Dangote Refinery has failed to obtain the required amounts of crude oil from the Nigerian National Petroleum Company in order to begin producing refined products.

The country's five additional modular refineries are likewise impacted by the lack of crude oil for production.

According to unidentified sources at the Nigerian Upstream Petroleum Regulatory Commission and the Federal Ministry of Petroleum Resources who spoke to the newspaper, executives of the Dangote Refinery have complained about a crude oil supply constraint.

According to one of the sources, "Officials from the Dangote Refinery visited the NUPRC recently to complain about the lack of crude oil required by the plant and why it would be odd for the company to be importing crude when Nigeria produces the commodity."

During the facility's opening in May 2023, Dangote Group President Aliko Dangote promised that the refinery would be operational by the end of July.

"Your excellencies, distinguished guests, our first product will be on the market before the end of July or the beginning of August this year," he stated.

However, after failing to meet the July production goal, Dangote Group Executive Director Devakumar Edwin stated in an exclusive interview with S&P Global Platts that the facility will start producing 350,000–370,000 barrels per day of diesel and jet fuel by October.

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