Home Business Dangote Refinery Hits 700,000bpd as Fuel Imports Decline

Dangote Refinery Hits 700,000bpd as Fuel Imports Decline

by Radarr Africa
REFINERY

Dangote Petroleum Refinery recorded its highest-ever capacity utilisation in August, operating at 105.21 percent of its 700,000-barrel-per-day nameplate capacity.

Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that the refinery processed an average of 736,470 barrels of crude per day during the month, up significantly from 497,000 barrels per day in July.

The increase came as deliveries of Nigerian crude to the refinery rose by 16.75 percent to 683,000 barrels per day, helping ease feedstock constraints that had occasionally limited operations since the facility began increasing production.

Higher crude processing also translated into increased refined-product output. The refinery produced an average of 84.43 million litres of refined products daily, including petrol, diesel and aviation fuel.

Dangote’s petrol supply to the Nigerian market rose by 39 percent month-on-month to 35.87 million litres per day in August. This represented about 71 percent of the country’s total domestic petrol supply.

As domestic supply increased, national petrol imports fell by 26 percent to 14.60 million litres per day, highlighting the growing role of the refinery in reducing Nigeria’s reliance on imported fuel.

The impact was even more significant in the diesel market. Domestic deliveries of Automotive Gas Oil averaged 12.37 million litres per day, while national diesel imports dropped from 7.90 million litres per day in July to just 1.30 million litres in August, representing a decline of more than 80 percent.

Dangote refinery

The refinery is also increasing its exports of refined products. During August, it shipped an average of 9.73 million litres of petrol, 8.75 million litres of diesel and 21.30 million litres of aviation fuel abroad each day.

The combination of declining imports and rising exports signals a shift in Nigeria’s position in regional energy markets, with the country increasingly supplying refined petroleum products to neighbouring markets alongside meeting domestic demand.

Dangote Group said the milestone demonstrates the refinery’s growing contribution to energy security, foreign-exchange conservation and industrial development.

The company also reaffirmed its commitment to increasing local value addition and supporting economic diversification while supplying refined products to Nigeria, other African countries and international markets.

Operating above nameplate capacity for extended periods can increase equipment wear, but the refinery has presented the performance as evidence of improved operational efficiency and reliability.

Company executives have attributed the higher output to more consistent crude supplies and improvements in the refinery’s processes.

The latest figures come as the refinery’s ongoing public offering continues to attract investor attention. The August performance could also strengthen the company’s argument that operations have moved beyond the volatility experienced during its initial production phase.

However, the movement in utilisation from 71 percent in July to more than 105 percent in August also shows how strongly the refinery’s output can respond to changes in crude availability.

The facility’s growing production has significant implications for Nigeria’s fuel market as the country seeks to reduce dependence on imported refined petroleum products and strengthen its position as a supplier within the wider African energy market.

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