The Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, has asserted that the Dangote Refinery can sustain its operations without relying on local patronage, emphasizing that the facility is prepared to export the majority of its products if local oil traders continue to boycott them.
Speaking during a Brekete Family live show, Edwin highlighted that the refinery, which is already exporting diesel and aviation fuel, is capable of exporting Premium Motor Spirit (PMS or petrol) as well, should domestic traders, including the Nigerian National Petroleum Corporation (NNPC) Limited, persist in their refusal to purchase the products.
Edwin confirmed that the refinery has recently begun the production of petrol and reiterated that the facility would focus on exports if there is insufficient demand within the local market. His remarks come as Nigeria faces an acute petrol shortage, with the NNPC admitting to owing suppliers over $6 billion.
“We have been exporting aviation fuel, producing kerosene, and diesel. Just yesterday, we began producing PMS, completing the final stage. The only segment left is petrochemicals,” Edwin stated.
He also revealed that the refinery is grappling with domestic crude oil supply challenges and has been forced to import most of its crude oil needs due to inadequate local supply. “We are not receiving enough crude allocation. The crude is still being exported, forcing us to import from abroad. While we do get some crude locally, it’s not sufficient,” he explained.
To address the shortfall, the refinery has initiated the construction of four new crude tanks, each with a capacity of 120 million liters, to store imported crude oil. Edwin explained that these tanks are necessary to ensure adequate reserves due to the lengthy shipping times involved in importing crude.
“The original plan was to refine local crude, add value, and supply finished products both locally and for export. However, we now find ourselves importing crude from the U.S., Brazil, and other countries. The entire philosophy has been turned on its head. After decades of exporting crude and importing refined products, the situation remains unchanged,” he lamented.
Despite the refinery’s capacity to load 2,900 tankers per day through its state-of-the-art gantry, Edwin noted that less than five percent of this capacity is currently being utilized due to low local patronage.
“Our gantry can load 86 tankers at a time, with a daily capacity of 2,900 tankers of petroleum products. Yet, we are not even reaching five percent of this capacity because local traders, perhaps fearing that domestic production will threaten their established interests, are not buying our products. As a result, we are exporting the products instead,” Edwin disclosed.
