Dangote supplies gasoline in August and offers refinery shares in March.

It has been revealed by Alhaji Aliko Dangote, the President and Chief Executive Officer of Dangote Industries Limited, that the Dangote Petroleum Refinery will be listed on the Nigerian Exchange by the end of March 2025.

This occurred as the refinery once more moved back from July to August the delivery date of Premium Motor Spirit, or gasoline

According to Dangote, the refinery will begin producing gasoline in August 2024 after working with the Federal Government and the Nigerian National Petroleum Company Limited to address its problems with the supply of crude oil.

He made these remarks on Sunday while giving top journalists a tour of the Dangote Fertilizer and refinery facilities in Ibeji-Lekki, Lagos.

“By the end of the first quarter of next year, we intend to list the petrochemical and refinery,” he said

He mentioned that last week, the refinery’s problem with foreign oil corporations over the delivery of crude oil was settled.

“Last week, the crude dispute was resolved. However, we trust that the IOCs would honor it,” he continued.

In addition, Dangote disclosed that the Federal Government’s ownership of the Dangote Refinery was just 7.2%, as opposed to the 20% disclosed.

“The Federal Government only owns 7.2% of the total because it was unable to cover the remaining 20% of the stake.

“Devakumar Edwin, the Vice President of Oil and Gas at Dangote Industries Limited, has accused foreign oil corporations operating in the nation of scheming to prevent the new Dangote refinery from surviving.

Edwin said that by raising the price above the market by $6, the IOCs were purposefully and knowingly impeding the refinery’s attempts to purchase local oil. As a result, the refinery was forced to import crude from nations as far away as the US, which came with significant expenses.

“The IOCs are purposefully and wilfully impeding our efforts to purchase the local crude,” Edwin declared.

“It appears that the IOCs want to make sure our petroleum refinery doesn’t succeed. They either explicitly claim that crude is unavailable or they are purposefully demanding an absurdly high premium.

We eventually spent $6 more than the going rate. Due to this, we have had to increase our production costs by lowering our output and importing crude from as far away as the United States.

It seems that the IOCs want to make sure that Nigeria continues to be a nation that imports refined petroleum products and exports crude oil. Their goal is to increase their countries’ GDP by dumping refined products into Nigeria, making us reliant on imports, while simultaneously exporting raw materials to their own countries, generating money and jobs there.

“The Crude crisis is over.”

Nonetheless, Nigerians who were concerned that a shortage of feedstock might cause the refinery’s PMS price to spike may find solace in Dangote’s declaration that the crude situation has been resolved.

According to our correspondents, this will be the refinery’s third delay in its PMS delivery date since it started supplying aviation fuel and diesel to the Nigerian market.

Dangote claims that the refinery started up again in 2024. beginning with the refinement of intermediate products, including jet fuel, gasoline, diesel, polypropylene, naphtha, and RCO.

The refinery’s steady state production phase began in March 2024, he said, and by August of the following year, production is expected to ramp up to 500,000 barrels per day with 15 crude cargoes per month, 550,000 barrels by the end of the year, and 650,000 barrels by the first quarter of 2025.

Dangote claims in a presentation that was made during the tour that the refinery project is complete and that over $26 billion in revenue is anticipated each year.

“The experimental run was completed successfully in January 2024. Jet fuel, naphtha, RCO, gasoline, diesel, and polypropylene are examples of refined and intermediate goods. In March 2024, the steady state production phase got underway.

Increasing output to 500kbpd (15 crude cargoes per month) by August of next year, 550kbpd by year’s end, and 650kbpd by 2025’s first quarter. July will see the start of gasoline manufacturing, and sales will follow in August. Dangote said, “Annual revenue is expected to exceed $26 billion.

“The refinery, he continued, has 86 loading bays on dedicated loading gantries, specialized marine facilities for loading petroleum products and offloading crude, a 900-kilo-ton annual polypropylene facility, 36 ktpa sulfur, and 585 ktpa of carbon black output.

The refinery has a total storage capacity of 4.5 billion liters, which is enough to store enough crude oil for 20 days’ worth of Nigeria’s fuel needs

.According to his claims, the refinery would generate 1.1 million tonnes and 53 million gallons of gasoline daily.

He declared with pride, “The Dangote Refinery can meet Nigeria’s requirements and have a surplus for exports.

He went on to say, “We have built over 200km of gas pipelines in partnership with NGIC on a BOT basis.” in reference to oil and gas. Other projects in the works include a 300 million standard cubic foot gas processing facility (design stage), a 600 million standard cubic foot onshore gas pipeline (construction stage), and an offshore pipeline measuring three billion cubic feet for the East-West Gas Gathering System (completed in design and engineering, awaiting commercial framework).

He said that these initiatives will assist stabilize gas pressure in the Escravos–Lagos Pipeline System and supply gas for more investment.

Dangote pledged at the Africa CEO Summit in Rwanda that as soon as the refinery began selling premium motor spirit in June, Nigeria will no longer import an average of one billion liters of the product each month.

He claims that as long as the Dangote refinery follows its planned schedule, Nigeria won’t require gasoline imports beginning in June.

Dangote added that his refinery can supply all of West Africa’s demands for gasoline and diesel, as well as aviation fuel.

He stated, “As of right now, Nigeria has no reason to import anything other than gasoline, and by the end of June, Nigeria shouldn’t import anything similar to gasoline—not even a single drop of a liter.”

“We have enough diesel to give to West Africa and Central Africa, and enough gasoline to give to at least all of West Africa,” he continued. We have enough aviation fuel to export some to Brazil and Mexico in addition to providing it to the entire continent.

“We have begun manufacturing diesel and jet fuel, and by the end of the next month, we want to begin manufacturing gasoline. That will enable it to accept the majority of African crudes.

Nigerians reacted angrily when Dangote announced in June that his intention to introduce premium motor spirit onto the market in the sixth month of the year would no longer be feasible.

During a visit of the plant with Lagos State Governor Babajide Sanwo-olu and other dignitaries, Aliko Dangote, the president of the Dangote Group, informed reporters that the refinery’s 650,000 barrel capacity will run out of gasoline in July.

Dangote stated that the goods would be available by July 10 to 15 and that this was because of a few small issues.

“We apologize for the slight delay, but PMS should be available by July 10–15. To ensure that it settles, we want to keep it in the tank after that. Thus, we’ll be able to launch it into the market by the third week of July, Dangote had stated.

In contrast to what is often believed, Dangote declared that the NNPC only owns 7.2% of the company, not the 20% that has been suggested.

He claimed that although the NNPC had committed to supply the money, it has not been able to fulfill its commitments, lowering its ownership position in the $19 billion refinery to 7.2%.

“The NNPC no longer owns a twenty percent stake in the Dangote refinery,” he declared. They still owe the money even though they were supposed to pay the remaining amount in June. They currently only hold a 7.2% interest in the refinery.

The NNPC stated in a statement on Sunday that it had made the decision not to increase its previous investment in the refinery.

Olufemi Soneye, the Chief Corporate Communications Officer of NNPC, claims that the oil firm made the decision to cap its investment at the sum already paid several months prior. Soneye made a suggestion that NNPC’s operations was unaffected by the decision to stop making additional investments in the Dangote refinery.

We decided a few months ago to limit our investment to the money we had previously paid. He stated curtly, “NNPC Ltd. made this decision, and it has no bearing on our company.

Listed in the first quarter

By the first quarter of 2025, Dangote intends to list his fertilizer and refinery facilities on the Nigerian Exchange Group.

The group decided to float the two companies in an effort to attract more investors and increase shareholder value.

According to Dangote, the Jigawa factory is scheduled to be put into service in a few months. The company is now building rice mills with a capacity of one million tons.

Dangote revealed that a $500 million loss occurred as a result of the delay in finding a location for the Dangote Petrochemical Facility in Ogun State.

The lengthy process of obtaining land at the Olokola Free Trade Zone refinery cost him $500 million on top of the $2.5 billion initial overdraft on bank loans, which he ascribed to the financial disaster.

He voiced his discontent with the bureaucratic roadblocks that he claimed had a detrimental effect on the project’s budget and schedule.

“We lost $500 million due to the Ogun State government’s three-year and eight-month delay in allocating land for a petrochemicals facility at Olokola,” stated Dangote.

Producing fertilizer has resumed.

It was learned that in order to provide farmers with a more bountiful crop, the company’s fertiliser plant would start up again in two weeks.

He said there was a massive request for Dangote fertiliser from Nigerians and the rest of Africa.

He noted that the fertiliser plant has 3Mta of granulated urea (2 lines of 1.5Mta each), saying it was largely export-driven business with 12 per cent sold domestically and 88 per cent exported to Sub-Saharan Africa, South America, the United States and Europe.

He revealed that the production of fertiliser has increased by 48 per cent to 1.2 million tonnes in 2023, creating 1,500 direct jobs and about 5,000 indirect jobs.

The richest man in Africa has projected that the company’s revenue would grow to about $30bn in the next few years, increasing six times.

It was stated that the cement business today generates 75% of the group’s income; Nigeria accounts for 80% of Earnings Before Interest, Taxes, Depreciation, and Amortization, with 90% of revenue coming from local currency.

The Dangote Group predicted that in the future, the cement industry will generate 15% of revenue, EBITDA from sources outside of Nigeria (including exports), and hard currency would account for 70% of revenue.

Dangote stated during the presentation that with a total capacity of 52 million tons annually spread over ten countries, the company’s cement is the dominant player in the African cement market. “Plans are underway to add a total of 9 million tons of capacity in Cote d’Ivoire and Nigeria,” he stated.

Recently, under a pricing mechanism set by the market, the Federal Government of Nigeria and its crude oil producers pledged to cooperate toward ensuring Dangote and other nearby refineries had a steady supply of crude oil.

According to both sides, the commitment’s goal is to guarantee that refineries don’t run out of feedstock while operators, or crude oil producers, do business as efficiently as possible.

As a result, oil refiners in the nation are required by the industry watchdog, the Nigeria Upstream Petroleum Regulatory Commission, to provide monthly price bids for crude supply.

This occurred at the same time that Bloomberg on Thursday reported that the $20 billion Dangote Petroleum Refinery is allegedly increasing the amount of crude it imports from the United States.

Manufacturers of oil

According to a statement released by the NUPRC on Thursday in Abuja, during a meeting called by the NUPRC, oil producers under the auspices of the Lagos Chamber of Commerce and Industry’s Oil Producers Trade Section consented to a mutually beneficial framework that would ensure that local refineries are not strangled by off-the-curve prices.

The Framework for Seamless Operationalization of Domestic Crude Oil Supply Obligation Template was the main topic of discussion during the meeting, which was called by Commission Chief Executive Gbenga Komolafe.

The commission said that it was a part of efforts to successfully implement important provisions of the Petroleum Industry Act (PIA) 2021, particularly the matter of pricing and the supply of oil to domestic refineries.

Komolafe claims that President Bola Tinubu is totally dedicated to giving producers and refiners fair and equal opportunities to conduct business in the sector.

“To ensure that the pricing model from the oil producers is not seen to be strangling the domestic refineries,” he said, a code of engagement is necessary.

In order to properly monitor and control transactions between parties, he gave producers and refiners instructions to start sending cargo price quotes on crude supply and delivery to the regulator.

He gave the order, “We need the price quotes on a monthly basis.”

Komolafe emphasized the connection between the country’s energy security and the Domestic Crude Oil Supply Obligation.

The head of NURPC stated that the regulatory mechanisms of his administration are being redesigned.

All of our procedures are open to public scrutiny. All sides must accept the rules of engagement as an operating manual as the Federal Government works to implement the regulation, he said.

According to the regulator, it is dedicated to advancing the willing seller/buyer problem.

“We need to talk about pricing, particularly because the parties have agreed to honor their commitment to use domestic crude oil. As the regulators, we do not want cost underrecovery to lead to subpar operations in the upstream sector.

The regulator is therefore well aware of that. We refuse to let price constriction in crude prices deter us from optimizing our local refining capabilities.

“We will keep working to ensure that crude supply profiteering is disallowed as a negative factor that can strangulate our domestic refining capacity optimization,” he emphasized. “The regulator does not support cost under-recovery in the upstream sector.”

The CCE added, “Just as we want sustainability of domestic energy supply in the midstream and downstream sector, the NUPRC is truly committed to attracting needed investments to boost upstream development and optimization of our hydrocarbon resources.”