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DAILY BLAST
You are at:Home»Breaking News»No plan to shut down petrol unit – Dangote refinery
Breaking News

No plan to shut down petrol unit – Dangote refinery

DailyblastBy DailyblastSeptember 8, 202503 Mins Read
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The Dangote Petroleum Refinery has denied a report that it could shut its petrol unit for two to three months. The spokesman of the Dangote Group, Anthony Chiejina, described the report as “fake”.

Reuters had reported that the petrol unit at the 650,000 barrel-per-day Dangote refinery may be shut for two to three months for repairs, quoting industry monitor IIR Energy. According to the report, the unit was said to have been shut since around August 29 after catalyst leaks.

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The report added that the refinery plans to attempt to restart the 204,000 bpd Residue Fluidised Catalytic Cracking Unit on September 20, but major repairs and equipment replacement could keep the unit shut for months.

However, Chiejina debunked the claims, describing them as fake news.

The Dangote spokesman wondered why the news agency used ‘could’ if it was sure of the planned shutdown.

“Fake news. Why ‘could’ if they are sure?” Chiejina told our correspondent when he was contacted for a reaction on Sunday. Reuters had reported that Dangote’s RFCCU was expected to be shut for at least two weeks.

The Dangote refinery, which began processing crude in January 2024, has slashed the Europe-to-West petrol export trade significantly. The European Union and the United Kingdom’s gasoline exports to Nigeria fell from an average of about 200,000 bpd in 2024 to about 120,000 bpd in the first half of this year, according to Kpler data.

It has also shipped two gasoline cargoes to the United States East Coast, expected to arrive in the New York area later this month, a major milestone as industry observers were closely tracking if and when the plant would produce fuel meeting US standards.

The Dangote refinery is planning a ramp-up to 700,000 bpd by December 2025. Meanwhile, it was reported that the refinery in August imported Ghana’s Sankofa crude, a grade heavier than the usual light sweet grades.

“In early August, a notable milestone was reached with the arrival of a 900 kb Suezmax carrying Sankofa crude from Ghana, the first time Dangote has imported Ghanaian crude. Sankofa, a medium-sweet crude, is heavier than the typical light sweet slate processed at the refinery. It is comparable to other medium-sweet grades that have been received to date, such as Brazilian Mero and Tupi and Angolan Pazflor,” Kpler reports.

The Dangote refinery had repeatedly decried its inability to secure enough feedstock locally. The Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said the country must ramp up production to meet its local and international demands.

As reported on the Kpler platform, crude deliveries to the Dangote refinery surged to a record-high monthly volume of 570,000 barrels per day in July. Approximately 60 per cent of these arrivals consisted of light sweet crude from the United States, while the remaining 40 per cent was made up of Nigerian grades.

“This marks the first time that US crude has overtaken Nigerian supply in Dangote’s import mix, a shift driven by ongoing challenges in securing domestic barrels and the cost competitiveness of WTI,” the report read. The diversification, it was stated, highlighted Dangote’s flexibility to process lower API grades.

Looking ahead, Dangote is expected to continue sourcing from a mix of West African and US grades, supplemented by domestic barrels, including Amenam, Bonny Light, and Escravos.

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