Dangote Refinery Intensifies Crude Supply Talks with NNPCL, Plans Massive Expansion to 1.4 Million Barrels per Day
Dangote Refinery has intensified discussions with the Nigerian National Petroleum Company Limited to secure additional crude supply under the naira-crude arrangement as it works to sustain production levels while undergoing maintenance activities. The newly appointed Managing Director and Chief Executive Officer, David Bird, told media on Wednesday that efforts are ongoing to maintain operations even as sections of the refinery undergo scheduled maintenance.
Bird revealed that the refinery currently produces between 50 and 52 million liters of petrol daily, with over one thousand trucks loading product each day at a gantry price of N699 per liter. He assured that the quality and affordability of petrol from the refinery would be maintained despite market volatility making it difficult to fully determine domestic volume demand.
In a significant announcement, Bird reconfirmed plans to expand the 650,000 barrel per day Dangote refinery to 1.4 million barrels per day by 2028. The company aims to add a second 750,000 barrel per day processing line at its Lagos site, largely replicating the existing plant which began commercial operations last year. Lessons learned from the first build and existing infrastructure will enable the second line to be delivered more quickly, he noted.
A doubling of capacity was part of the original design, but the company opted to assess performance before committing to expansion. Having now decided to proceed, the second line is expected to be completed within three years. Bird also mentioned that a free delivery plan is still being worked out and will be flagged off soon. The upgrade of the existing facility is ongoing and would be completed in the next three years.
Source: orientalnewsng.com
