Dangote Refinery Set to Ramp Up Production Despite Crude Supply Challenges

Nigeria's Dangote refinery aims to reach 550,000 barrels per day by year-end, achieving 85% of capacity. However, the facility relies on increased crude imports due to insufficient domestic supplies. The 650,000-bpd capacity refinery, Africa's largest, has only received five crude cargoes from NNPC, prompting the need for alternative sources.

Nigeria's Dangote refinery is set to boost production to 550,000 barrels per day (bpd) by the end of this year, achieving 85% of its total capacity. However, due to insufficient domestic crude supplies, the refinery is increasing its imports, according to the plant’s CEO, Aliko Dangote.

The refinery, which has a capacity of 650,000 bpd and is the largest in Africa, has only received five crude cargoes from the state oil firm NNPC since it began operations earlier this year, instead of the 15 it had anticipated.

"That is why we went ahead and bought some Brazilian crude; we also got U.S. crude. Anytime we go to international oil companies (IOCs), they say go to brokers," said Dangote during a tour of the Lagos-based facility. He noted that brokers were adding a $4 mark-up per barrel of crude.

Previously, NNPC had agreed to supply the refinery with 300,000 bpd, but it is currently struggling with low production and some crude is being exchanged for gasoline imports. The Dangote refinery, constructed at a cost of $20 billion, began production in January after several delays.