Dangote Refinery Gains Momentum Amid Crude Supply Challenges

The Dangote Refinery in Lagos, Nigeria, reaches 85% operational capacity, aiming to deliver European-standard fuel by January. Despite initial challenges with local crude supply, it has sourced crude internationally and adjusted its petrol prices to support local transportation costs during holidays.

The Dangote Refinery in Lagos, Nigeria, has ramped up its operations, achieving 85% capacity, as it seeks to produce fuel that meets European standards by January. The refinery, built by Nigerian billionaire Aliko Dangote, faced initial challenges in securing local crude supply, pushing it to source from international markets.

Edwin Devakumar, the head of the refinery, noted a production increase to 550,000 barrels per day. A supply dispute with the Nigerian state-oil firm NNPC had earlier impeded operations, relating to an agreement for a 20% stake in the refinery valued at $2.76 billion.

Despite these hurdles, the refinery started processing various products like diesel and jet fuel. To mitigate transport costs during the festive season, Dangote Refinery has cut petrol prices, while NNPC resumes processing at its Port Harcourt plant.

(With inputs from agencies.)