Why Dangote Refinery failed to begin production in October

Why Dangote Refinery failed to begin production in October

Apart from Dangote Refinery, five other modular refineries are also affected by the unavailability of crude oil for their production.

The refinery is expected to start producing up to 370,000 barrels per day of diesel and jet fuel, but the October production target failed to happen.

According to Newsmen the delay in the production of refined petroleum products at the Dangote refinery is due to the shortage in crude supply to the facility.

It is reported that Dangote Refinery is yet to receive the required volumes of crude oil needed to begin its production of refined products from the Nigerian National Petroleum Company.

Five other modular refineries in the country are also affected by the unavailability of crude oil for their production.

Confirming the development, anonymous sources at the Nigerian Upstream Petroleum Regulatory Commission and Federal Ministry of Petroleum Resources who spoke to newspaper said officials of the Dangote Refinery have complained about the shortage in crude oil supply.

One of the sources said, "Officials from the Dangote Refinery visited the NUPRC recently to complain about the lack of crude oil required by the plant and why it would be odd for the company to be importing crude when Nigeria produces the commodity."

This is the second time Dangote Refinery would miss its production target in 2023.

During the inauguration of the facility in May 2023, the President of Dangote Group, Aliko Dangote, assured that the refinery would begin operations by the end of July.

"Your excellencies, distinguished guests, our first product will be in the market before the end of July or beginning of August this year," Dangote had said.

However, after failing to meet the July production deadline, the Executive Director of the Dangote Group, Devakumar Edwin, in an exclusive interview with S&P Global Platts promised that the facility would begin production with 350,000-370,000 barrels per day of diesel and jet fuel by October.

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