Nigeria's Dangote Refinery begins supply of diesel, aviation fuel
TLDR
- Dangote Oil Refinery commences supplying petroleum products to the Nigerian market, including diesel and aviation jet fuel.
- Local oil marketers in Nigeria set diesel price at N1,225 ($0.96) per liter with a bulk purchase agreement and mark-up.
- Africa's most expansive refinery project, Dangote Refinery near Lagos, has a processing capacity of 650,000 barrels per day led by Aliko Dangote with a $20 billion investment.
Dangote oil refinery has started supplying petroleum products, including diesel and aviation jet fuel, to the Nigerian domestic market, as reported by several local and international media.
Abubakar Maigandi, the head of the Independent Petroleum Marketers Association of Nigeria, confirmed to Reuters that local oil marketers have set the price of diesel at N1,225 ($0.96) per litre after securing a bulk purchase agreement, which they will then augment with their mark-up.
Situated on a peninsula near Lagos's commercial hub, the Dangote refinery stands as Africa's most expansive refinery project, boasting a processing capacity of up to 650,000 barrels per day. It is led by Aliko Dangote, the continent's wealthiest individual, with an investment exceeding $20 billion.
Key Takeaways
The Dangote refinery holds the promise of substantially diminishing Nigeria's reliance on imported petroleum products. Despite being Africa's most populous country and a top oil producer, Nigeria paradoxically imports the majority of its fuel. This anomaly is primarily attributed to the nation's limited refining capabilities, a gap that the new refinery aims to bridge, heralding a transformative shift in the country's energy landscape. Furthermore, a decision to list the Refinery on the Nigerian Exchange Limited (NGX) is expected to draw a diverse range of investors, both from domestic and international markets. This listing is poised to enhance the liquidity of the Nigerian stock market and bolster its reputation as a prominent regional investment hub.
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