A scarcity of crude oil may cause Dangote Oil Refinery’s much-anticipated July entry into the gasoline supply market to be delayed, an industry insider has said.
The source said this amid worries that Dangote may not be able to reach its goals for refining gasoline due to a shortage of easily accessible crude oil.
The Lekki, Lagos-based refinery, with a 650,000 barrels per day (bdp) capacity, was supposed to start operating in July. Its goal is to lower Nigeria’s dependency on imported fuel drastically.
A source in the oil trading business told BusinessDay
According to Jide Pratt, country manager of Trade Grid, the Dangote refinery is unlikely to make the July deadline, which supports a large network of independent dealers throughout Africa.
Pratt said,
To date, Dangote Refinery has only taken delivery of Nigerian and US crude grades. Still, it could increasingly seek alternative term contracts with other supply sources as it scales production, traders have speculated.
One source said,
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC), on June 3, said it would mandate international oil companies (IOCs) to supply crude oil to the Dangote oil refinery.
Olaide Shonola, spokesman of NUPRC, told BusinessDay that the commission is intervening to ensure the local sale of crude to Dangote and other refineries in the country.
Shonola stated this while reacting to a claim by president of the Dangote Group, Aliko Dangote, that the international oil companies are not ready to sell crude to the refinery.
she stated,
TimesNow.com.ng reported that Aliko Dangote, Africa’s richest man and a leading industrialist, is preparing to embark on his next ambitious venture: a steel production company.
Dangote disclosed his new ambition while speaking at the Afreximbank Annual Meetings (AAN) d AanfriCaribbean Trade & Investment Forum in Nassau, The Bahamas, on Wednesday, June 12.
Dangote’s new steel company is expected to boost Nigeria’s steel production capacity significantly, reducing the country’s reliance on imports.
Source: TimesNow.com.ng
