NNPC to Allocate Dangote Refinery With Six Million Barrels Of Crude Oil

The Nigerian National Petroleum Company Limited (NNPC) will provide Dangote Refinery and Petrochemicals Limited with six million barrels of crude oil beginning in December of this year, in a significant move.
The critical supply is a critical step towards the Dangote Refinery’s full-scale operation, a $19.5 billion complex that is the world’s largest single-train refinery.
Former President Muhammadu Buhari commissioned the refinery on May 22, 2023, and it completed full technical completion five months later.
NNPC Limited has allocated crude oil to Dangote Refinery, according to multiple sources within the Nigeria Upstream Petroleum Regulatory Commission and Dangote Refinery. The signing of crude oil supply sales and purchase agreements was a watershed moment.
In order to guarantee a consistent supply of crude oil to nearby refineries, the Petroleum Industry Act (PIA) imposes a domestic supply requirement, which is in line with the provisions of this allocation.
Based on a willing buyer and willing seller model, PIA states that crude oil supply to the domestic market will occur.
Crucially, NNPC Limited would pay the internal price mechanism for petroleum products just like any other buyer does from Dangote Refinery.
Aliko Dangote, the president of the Dangote Group, praised NNPC Limited for being a cooperative partner that will offer vital assistance for the start-up of the 650,000 barrels per day refinery.
NNPC’s ability to provide crude oil to the refinery was something he had already confirmed.
The goal of the Dangote Refinery, which is situated in Lagos’ Lekki Free Trade Zone, is to help Nigeria become fuel-self-sufficient and expand its export market.
With an integrated distillation plant, it is the biggest single-train refinery globally and the largest refinery in Africa for crude oil.
Three billion Standard Cubic Feet per day (Scf/d) of gas can be handled at the complex thanks to its extensive pipeline system, which spans 1,100 kilometres.
In addition, this refinery has a 435 MW power plant that can supply the Ibadan Electricity Distribution Company (IBEDC) with all of its electricity needs. Its capacity allows it to meet all of Nigeria’s needs for refined petroleum products, such as kerosene, diesel, petrol and jet fuel for aeroplanes.
Starting this week, the Refinery will receive 300,000 barrels of crude oil per day to support its operations, as the NNPC has already acquired a 20% equity part in the facility.

Source: allnewsnigeria.com

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