The Dangote Refinery, a highly anticipated project in Nigeria’s oil and gas sector, has delayed its production timeline, leaving market stakeholders and enthusiasts eagerly awaiting its commencement. The refinery, which is expected to be one of the largest in the world, has faced several delays since its inception.
Initially, the refinery was scheduled to begin production in 2016, but it faced setbacks due to a change in location and financing issues. The project’s cost also ballooned from an initial estimate of $9 billion to over $19 billion.
In 2022, the refinery’s owner, Aliko Dangote, announced that the project would be completed in 2023, but that timeline has also been pushed back . The refinery has started receiving crude oil shipments, with the first delivery of 1 million barrels of Agbami crude oil arriving in December 2023. However, it has yet to begin full production.
The delay has sparked concerns among market stakeholders, who are eager to see the refinery’s impact on Nigeria’s oil and gas sector. The refinery is expected to supply 100% of Nigeria’s oil needs and have a surplus for export.
Despite the delay, the refinery has started producing diesel fuel and aviation fuel A1, and its owner, Aliko Dangote, has announced plans to list the company on the London Stock Exchange and the Nigerian Stock Exchange.
As the wait continues, market stakeholders remain hopeful that the Dangote Refinery will revolutionize Nigeria’s oil and gas sector and have a positive impact on the country’s economy.