Dangote Oil Refinery and Petrochemicals in the Ibeju-Lekki area of Lagos State has concluded the test production of Premium Motor Spirit (PMS), fondly called petrol, and will begin sale immediately.

The 650,000 barrels per day Dangote refinery is on the brink of producing significant volumes of petrol and the fuel could be made available as early as this week.

Bloomberg, in a report on Monday, September 2, 2024, quoted two sources as saying that petroleum product testing has started in earnest, describing the development as a landmark moment with the potential to transform the global market for fuel.

The ramp-up is likely to be welcomed within the country, given that the state oil company – Nigeria’s main importer of fuel – said its ability to supply gasoline is being disrupted by debt and rising prices, the American media company stated.

Reuters, in a report on Monday, added the Dangote refinery had begun processing petrol after delays caused by recent crude shortages.

The $20 billion refinery began operations in January with an output of products including naphtha and jet fuel. The refinery promises to ease oil producer Nigeria’s costly reliance on imported oil products.

The federal government had in August said it would begin crude oil sales in naira to the Dangote refinery and others in October 2024.

The government stated that the move was to enhance Nigeria’s economic growth and development.

Oil producers reject Tinubu’s order on crude sale to Dangote refinery, others

The Organisation of Petroleum Exporting Countries (OPEC) also said supplies from the Dangote refinery will put pressure on the performance of Europe’s oil industry, especially the Northwest Europe (NWE) Gasoil.

OPEC in its newly released monthly Oil Market Report for June 2024 listed Dangote refinery among the top diesel and jet fuel suppliers that will disrupt Europe’s oil and gas Industry, a development experts forecasted will positively impact the Nigerian economy.

The OPEC report revealed that “upside potential for higher production levels from Nigeria’s Dangote refinery, coupled with strong flows from the Middle East and new supplies from the Mexican Olmeca refinery, will likely exert pressure on NWE gasoil performance in the mid-term.”

“Europe is one of the world’s largest purchasers of refined petroleum products and relied on imports from Asia and the U.S. after the European Union banned the use of Russian diesel in the bloc,” it added.

The Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, announced the company had earlier exported its first jet fuel cargo to Europe as it rapidly scales production.

The refinery was said to have exported 90 per cent of its 3.5 billion litres of jet fuel and diesel to Europe over an alleged lack of support from the Nigerian government.

Dangote refinery: We’ve not fixed petrol price

“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported,” Edwin was quoted as saying in a statement made available to The Star on August 8.

Also speaking, the President of Dangote Group, Aliko Dangote, said the facility would broaden its feedstock sources with Libyan, Angolan, and Brazilian crude.

“The refinery was built to use Nigerian crude and add value to it within Nigeria. Why should we deviate from that focus?” Dangote added.

He, therefore, noted that the crude supply issues were “getting resolved”, saying the refinery remained open to all opportunities “to supplement it”.

The Star