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The Dangote Petroleum Refinery processed crude above its designed capacity in August, helping to increase local fuel supply and reduce Nigeria’s dependence on imported petroleum products.
Data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that the 700,000-barrels-per-day refinery operated at an average of 105.21 per cent capacity utilisation during the month.
The refinery processed an average of 736,470 barrels of crude oil per day, up sharply from 497,000 barrels per day in July, when it operated at 71 per cent capacity.
The increase came as crude deliveries to the refinery improved by 16.75 per cent to 683,000 barrels per day in August.
The higher crude processing also lifted production of refined petroleum products, with the refinery producing an average of 84.43 million litres of refined products daily, including petrol, diesel and aviation fuel.
The development is expected to strengthen local fuel supply and reduce pressure on Nigeria’s foreign exchange, as more petroleum products are produced locally instead of being imported.
In August, the refinery’s daily supply of Premium Motor Spirit (PMS), popularly known as petrol, to the domestic market rose by 39 per cent to 35.87 million litres.
The figure represented about 71 per cent of Nigeria’s total domestic petrol supply during the month.
As local supply increased, the country’s petrol imports fell by 26 per cent, from the previous level to 14.60 million litres per day.
The refinery also recorded a major impact on the diesel market.
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Domestic deliveries of Automotive Gas Oil (AGO), commonly called diesel, averaged 12.37 million litres per day in August, while Nigeria’s diesel imports fell sharply from 7.90 million litres per day in July to just 1.30 million litres per day in August.
The development could provide some relief to businesses and other users of diesel, particularly in transportation, manufacturing, agriculture, telecommunications and power generation, which rely heavily on the product.
Beyond the domestic market, the refinery continued to export refined petroleum products.
It exported an average of 9.73 million litres of petrol, 8.75 million litres of diesel and 21.30 million litres of aviation fuel per day in August.
The exports are expected to increase Nigeria’s ability to earn foreign exchange from refined petroleum products while strengthening the country’s position in the regional petroleum market.
The Dangote Group said the refinery’s August performance demonstrated its growing contribution to Nigeria’s energy security, foreign exchange conservation and industrial development.
Operating above its 700,000-barrels-per-day nameplate capacity also points to the refinery’s ability to process more crude than its stated design capacity under favourable operating conditions.
The company said it remained committed to increasing local value addition and supplying refined petroleum products to Nigeria, other African markets and the global market.
The latest performance comes as the refinery continues to expand its role in Nigeria’s petroleum industry, with increased local production gradually changing the country’s long-standing dependence on imported refined products.
