Dangote Refinery is set to roll out its first shipment of Premium Motor Spirit (PMS), commonly known as petrol, today, Tuesday, September 3, Nairametrics has confirmed.
The refinery, with a capacity of 650,000 barrels per day, has successfully completed its testing phase and is now ready to introduce its products to the local market.
This development is anticipated to provide much-needed relief to Nigerians who have been grappling with severe petrol shortages in various towns and cities across the country.
Insider sources stated that the Nigerian National Petroleum Corporation (NNPC) Limited will be the initial purchaser of Dangote’s products, with NNPC officials already stationed at the Lagos petrochemical plant to take delivery.
Nairametrics also confirmed that Aliko Dangote, the CEO of the refinery, is present at the plant today to witness the grand unveiling of the petroleum products following months of delays and glitches.
It’s worth noting that Nairametrics reported on Monday that NNPC is expected to be the exclusive buyer of Dangote’s products due to its current challenges in meeting international debt obligations to global oil traders.
What we know
The rollout of petrol by Dangote Refinery marks a historic milestone in Nigeria’s oil and gas sector, as the country, which has long relied on petrol imports, takes a significant step towards self-sufficiency.
With a production capacity that not only meets domestic demand but also allows for exports to neighbouring countries, Dangote Refinery is poised to end Nigeria’s dependence on imported petrol.
Credible reports indicate that Nigeria currently consumes about 35 million liters of petrol daily, while Dangote Refinery, once fully operational, can produce at least 100 million liters per day.
Although the refinery has faced various challenges and delays in the past, including supply issues with the Nigerian National Petroleum Corporation (NNPC) and international oil companies (IOCs), these issues were eventually resolved through the intervention of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and other key stakeholders.
The Federal Executive Council (FEC) further supported the project by offering an arrangement that allows Dangote Refinery to purchase crude oil in local currency and sell petrol in the same currency, thereby easing pressure on the foreign exchange market.
As Dangote Refinery begins rolling out petrol today, with shipments expected to reach the local market in the coming days, Nigeria is set to transition from being solely a crude oil producer to a nation with potential energy security and independence.
Additionally, the refinery’s production of petroleum products signals the complete deregulation of the downstream sector, paving the way for a more robust and competitive market.
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