According to Edwin, the Dangote refinery will receive its first cargo of crude in the next two weeks and will begin producing up to 370,000 barrels per day of diesel and jet fuel from October 2023.
He also noted that the refinery will start the phased ramp-up to 650,000 barrels per day of petrol by November 30.
Edwin said: Right now, I’m ready to receive crude. “We are just waiting for the first vessel. And so as soon as it comes in, we can start.”
Explaining the timeline change, Edwin told S&P that the NNPCL had said they had committed their crude on a forward basis to someone else, so they didn’t have the crude immediately.
He noted that this is a temporary issue, and the refinery should run on exclusively Nigerian crude by November 2023.
Furthermore, he stated that the Nigerian oil will be purchased in US dollars, and not naira because it is in a free zone on the outskirts of Lagos.
However, NNPCL will supply some crude at knockdown prices due to its equity stake.
Edwin also said that the Dangote refinery can process most African crudes, apart from heavy Angolan grades as well as Middle Eastern Arab Light and even US light tight oil.
“We can take even some of the Russian grades… if the global system opens up to allow us to receive them. Basically, if you look at our production profile, 50% of my production will meet 100% of the requirements of the country,” he said.
He added further: “Excess gasoline – which will be 10 ppm sulfur Euro 5 quality — will be exported to other African markets as well as the US and South America, although the volumes will be relatively small. Meanwhile, jet fuel will be exported to Europe and diesel will be sold in sub-Saharan Africa.”
According to him, the refinery will also ease a fuel supply crisis in import-dependent West Africa, where Nigeria’s recently scrapped fuel subsidy created a thriving illicit market for gasoline amid price fluctuations.
He noted that the money coming back into the refinery business will go for further investments because Aliko Dangote’s focus is always on Nigeria.
S&P reported that Edwin said the Dangote refinery would be enormously beneficial to Nigeria by establishing a reliable supply of “environmentally friendly” refined products and bringing a huge amount of foreign exchange iinto Nigeria.