Dangote Refinery Dismisses Shutdown Rumors, Says Petrol Unit Fully Operational

0

Business News Correspondent

Bosun Ayetiwa

 

 

 

 

The management of the Dangote Petroleum Refinery has strongly refuted reports claiming its petrol production unit is set for a prolonged shutdown. The company described the speculation as baseless and misleading, insisting that operations at the multi-billion-dollar facility remain stable.

The clarification came after an international energy intelligence group suggested that the refinery’s 204,000-barrel-per-day Residue Fluidised Catalytic Cracking Unit (RFCCU) had been idled due to technical faults, with possible repairs stretching into months. The report, widely circulated by Reuters, alleged that a catalyst leak had forced the plant offline in late August.

In response, Dangote Group’s spokesperson, Anthony Chiejina, labeled the claims “fake news,” questioning the credibility of reports built on uncertainty.

“Why use the word ‘could’ if they were sure?” Chiejina asked, maintaining that there are no plans for an extended shutdown of the unit.


Refinery’s Growing Global Footprint

Since beginning operations in January 2024, the 650,000 bpd refinery has altered global fuel flows, reducing Nigeria’s dependence on imported petrol and reshaping trade dynamics.

European gasoline exports to Nigeria dropped sharply, falling from an average of 200,000 barrels per day in 2024 to about 120,000 bpd in the first half of 2025, according to data from Kpler. Meanwhile, the refinery has already achieved a milestone by shipping cargoes to the U.S. East Coast, with the first deliveries to New York scheduled this month. Industry watchers say this confirms the plant’s ability to meet strict U.S. fuel standards—a feat once doubted.

Dangote Petroleum Refinery aims to ramp up output to 700,000 bpd by December 2025, placing it among the largest refineries in the world.


Diversified Crude Supply

One of the refinery’s ongoing challenges has been sourcing adequate crude oil domestically. Nigeria’s production struggles have pushed the facility to import a mix of crude grades.

In August, the refinery imported Ghana’s Sankofa crude for the first time—a heavier, medium-sweet grade compared to the light sweet crudes typically processed. It has also taken deliveries from Brazil, Angola, and the U.S. Notably, U.S. light crude (WTI) overtook Nigerian supply in July for the first time, making up 60 percent of inflows, with Nigerian barrels covering the rest.

Analysts say this diversification strategy underscores Dangote’s operational flexibility, allowing it to process a broader range of crude types while maintaining steady output.


Performance and Outlook

According to Kpler’s market intelligence, the refinery is currently running at about 445,000 bpd, or 68 percent of capacity—up from 400,000 bpd in the first quarter. Throughput is expected to hold near current levels, with a temporary dip anticipated during scheduled maintenance between December and January.

Despite challenges in securing domestic feedstock, industry experts believe the refinery has firmly positioned itself as a regional energy powerhouse. Beyond meeting local demand, its exports are beginning to influence markets in Europe, Africa, and North America.

For Nigerians, however, the immediate concern remains stability. With fuel supply chains still fragile and pump prices highly sensitive to speculation, Dangote’s dismissal of shutdown rumors is aimed at calming markets and assuring consumers that production is uninterrupted.

“We remain committed to our mandate of transforming Nigeria’s energy sector,” Chiejina reiterated. “There is no truth to reports of a looming petrol unit shutdown.”

Leave A Reply

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More