• Sunday, March 03, 2024
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BusinessDay

Dangote refinery receives 1m barrels maiden crude cargo

Why Dangote Refinery should be supported and encouraged

The Dangote Refinery has received its first shipment of crude oil, marking a major milestone for the project.

Sources confirmed to BusinessDay that a cargo from Shell International Trading and Shipping Company Limited (STASCO) containing one million barrels sailed from Agbami to Dangote Refinery’s Single Point Mooring (SPM) where it was discharged into the refinery’s crude oil tanks.

Read also: Dangote Refinery to receive first crude shipment as production nears

The 1-million-barrel shipment is the first of a 6-million-barrel commitment from the Nigerian National Petroleum Company (NNPC).

“This is good news. The volumes mentioned are small so it implies that they are being used for testing rather than full-on production,” Andrew Alli, former CEO of the Africa Finance Corporation (AFC) said on X, formally known as Twitter.

He added, “But an important step. The refinery as I have said “severally” will not have much of a material positive effect on fuel prices or FX but it will increase the value added and the economic complexity in our economy, both of which are good things”.

Sources said the next four cargoes will be supplied by the NNPC in two to three weeks and the final of the six cargoes will be supplied by ExxonMobil.

This supply will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and LPG before subsequently progressing to the production of Premium Motor Spirit (PMS).

An inside source in Dangote who spoke with our correspondent after the ship arrived at Lekki anchorage, the management is expected to commence barging the crude.

Read also: Dangote refinery secures 300,000bpd crude refining licence

“Hopefully, we will barge it today after going through the necessary regulatory clearance. I am sure we will finalise all the clearance today. Also, there is going to be a ceremony to receive the shipment. This is a great and exciting event and a historic moment for our country,” he said.