The mega Dangote Refinery in Nigeria will not undergo any shutdown or maintenance for the rest of 2025, the company has confirmed.
This comes amid speculation in the oil market about a possible turnaround maintenance on the refinery’s Residue Fluid Catalytic Cracker (RFCC) unit in December.
Executive Director at Dangote Industries, Mr. Edwin Devakumar, said on Tuesday that such a plan is not under consideration. He stated that gasoline demand is expected to be strong in December, making any shutdown commercially unwise.
“There will be no maintenance shutdown for the rest of this year,” Mr Devakumar said. “We expect good demand for gasoline during that period.”
The RFCC unit at the refinery has a processing capacity of 250,000 bdp and is designed to produce high volumes of gasoline and diesel.
According to Devakumar, current refinery operations are stable and targeted at supporting local fuel supply and reducing import reliance.
Nigeria nears sufficient local supply
In another development, Nigeria’s drive to reduce fuel imports is gaining traction as the Dangote Refinery operates close to full capacity.
Crude receipts into the facility reached 605,000 bdp in July, according to preliminary data from Kpler. This figure indicates crude throughput at 93% of the refinery’s nameplate capacity.
The refinery’s output is helping to ease fuel supply pressure in Nigeria and neighbouring West African countries.
With the RFCC unit producing a gasoline to diesel ratio of 70:30, the Dangote plant is gradually reshaping fuel availability in the region.
There are expectations that continued steady production will improve Nigeria’s energy security.
Gasoil market reacts to stable production
The steady diesel and Gasoil output from Dangote has influenced the regional market, particularly on the West African coast.
A trading source told Argus that Gasoil prices on a Free On Board (FOB) Offshore Lome basis have stabilised as a result of steady supply from the refinery.
As of Tuesday, Argus assessed 50ppm Gasoil on an FOB Lome basis at a premium of $31.25 per tonne to front month August ICE Gasoil futures.
The increased volume of Nigerian specification Gasoil is contributing to supply balance in the region, easing the pressure on traders.
The Dangote Refinery, commissioned in May 2023, is Africa’s largest single-train crude processing facility.
Its operations are expected to play a major role in transforming Nigeria’s petroleum sector and reducing fuel import bills that have strained the country’s finances for years.
