Dangote Refinery nears full Capacity as Alkylation Unit Comes Online, Boosting Nigeria’s Fuel Output
The Dangote Refinery, situated in Lagos, is Africa's largest oil refinery with a nameplate capacity of 650,000 barrels per day (bpd). Recent reports indicate that the facility has been operating at approximately 85% capacity, processing around 550,000 bpd. This achievement marks a significant step towards reducing Nigeria's reliance on imported refined petroleum products.
The commissioning of the alkylation unit is pivotal for enhancing the refinery's ability to produce high-octane gasoline components, thereby improving the overall quality and quantity of gasoline output. This development aligns with the refinery's strategy to deliver European-standard petroleum products to both domestic and international markets.
Despite these advancements, the refinery has encountered challenges in securing adequate crude oil supplies locally. Disputes over crude supply agreements with the Nigerian National Petroleum Company Limited (NNPCL) have necessitated sourcing crude from international markets. Efforts are ongoing to resolve these issues and ensure a steady supply of feedstock to sustain full-scale operations
In addition to ramping up production capacity, the Dangote Refinery has begun to influence global fuel markets. Notably, U.S. jet fuel imports have surged as the refinery exports jet fuel to international destinations, contributing to a decrease in aviation fuel prices ahead of the peak travel season. Furthermore, the refinery has issued tenders to sell significant quantities of residual fuel oil, indicating its growing role in the global energy supply chain.
As the refinery progresses towards full operational capacity, it is poised to significantly impact Nigeria's energy landscape by reducing fuel importation costs, stabilizing domestic fuel prices, and positioning the country as a key player in the global petroleum market.
