NNPCL To Supply 300,000 Bpd Of Crude Oil To Dangote Refinery

Nigerian National Petroleum Corporation Limited (NNPCL) announced that the state-oil firm will provide 300,000 barrels per day (bpd) of crude oil to the Dangote Refinery.

Managing Director of the Nigerian National Petroleum Corporation, Mele Kyari made the announcement during the Nigerian Oil and Gas Opportunities Fair 2023 held in Bayelsa State on Thursday, revealing that the supply will start next week.

Considering NNPCL has a 20% of stake in the refinery, the company's MD explained that they want to address the energy challenges in Nigeria so that industrialization can come to the country.

He added, "48% of all revenue that comes to the government comes from the oil and gas sector and we are in a very good position to support the growth of the economy," Punch reported.

Earlier this month, a presidential aide, Bashir Ahmad took to Twitter to announce that President Muhammadu Buhari will inaugurate the Dangote Refinery on May 22.

"Efforts by the Federal Government to make Nigeria self-sufficient in local refining of crude oil to save the scarce foreign exchange used in the importation of petroleum products have received a boost as the 650,000 barrels per day Dangote Refinery, the world's largest single-train refinery, is set for inauguration on May 22nd, 2023, by President Muhammadu Buhari," he tweeted.

Alongside the announcement, he posted the photo of Africa's richest man and CEO of the Dangote Group, Aliko Dangote.

The refinery has been installed with a capacity of 650,000bpd and it is estimated worth over $19 billion, located in Lekki Free Zone, Lagos, Nigeria. While the refinery project is still under construction, it is expected to become the biggest oil refinery in Africa.

According to the company's official website, the refinery claims it would meet "100% of the Nigerian requirement of all refined products and also have a surplus of each of these products for export."

"Dangote Petroleum Refinery is a multi-billion dollar project that will create a market for $21 Billion per annum of Nigerian Crude," it stated. "It is designed to process Nigerian crude with the ability to also process other crudes."

The website also claims that the Pipeline Infrastructure of the refinery is the largest in the world as it is 1,100 kilometers that handle 3 billion Standard Cubic Foot of gas per day, adding that "the Refinery alone has a 435MW Power Plant that is able to meet the total power requirement of Ibadan DisCo."

The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria, Chief Ukadike Chinedu shared his excitement regarding the inauguration of the facility.

"We are optimistic and excited to know that the refinery is set for the inauguration, considering the humongous benefits that it is going to have on not just the oil sector, but on the Nigerian economy," he said, "With the coming on board of the Dangote Refinery, we believe that Nigeria will say goodbye to PMS scarcity, as well as the poor supply of other petroleum products."