1. Home
  2. Stories
  3. Energy
  4. Oil & Gas

Excitement as Nigeria's Dangote refinery starts production

Business Edge Reporter 15th Jan, 2024 Energy Agencies
Excitement as Nigeria's Dangote refinery starts production

IMPRESSIVE: Part of the Dangote Oil Refinery in Lagos, Nigeria. NET PHOTO


The Dangote Oil Refinery, the largest on the continent at 650,000 barrels per day (bpd), has begun producing diesel and aviation fuel, the company said on January 13.

The refinery, owned by billionaire Aliko Dangote, has been built at a cost of about $20 billion – more than enough to fund Uganda’s national budget for a year - and is widely expected to solve Nigeria perennial petroleum challenges.

Africa’s most populous nation spends more than $23 billion a year to import petroleum for its 250 million people.

  • The prices of petrol have more than tripled from a year ago after the government scrapped fuel subsidies in Africa’s largest crude oil producer.

The refinery is also expected to make the country a net fuel exporter of gasoline, diesel, kerosene, and aviation jet fuel to neighbouring West African States.

The facility has already received millions of barrels of crude oil and is expected to start with a capacity of about 350,000 bpd, but it should be able to meet the country's entire domestic fuel demand, as well as exporting refined products, by the end of 2025.

  • The refinery is supplied with crude oil via the largest sub-sea pipeline infrastructure in the world (1,100 km long).

At a complexity of 10.5, the Dangote refinery is reportedly more complex than most refineries in the United States (average 9.5) or Europe (average 6.5).

The eventual launch of the long-awaited project will be an encouragement to Uganda, which is planning to build its own 60,000 bpd refinery worth $4 billion to process its crude oil in Hoima.

The Government of Uganda is still seeking a lead investor for the project in which several East African Community partner States have also expressed interest in holding shares.

Similar Posts You May Like 

  • Simba Telecom and d.light Partner to Distribute Solar Products in Uganda

    Simba Telecom and d.light Partner to Distribute Solar Products in Uganda..

    Simba Telecom Uganda, a leading telecommunications company, and d.light, a global leader in solar-powered solutions, have signed a partnership agreement to distribute solar solutions across Uganda. Under the partnership, Simba Telecom Uganda will expand its product offerings to include d.light's ..

  • Uganda targets $4 billion in green investment deals at COP28 in Dubai

    Uganda targets $4 billion in green investment deals at COP28 in Dubai..

    The Uganda Investment Authority (UIA) is participating in the 28th Conference of the Parties (COP 28) to the United Nations Framework Convention on Climate Change with an ambitious target of clinching four billion dollars in green investment deals...

  • Dubai COP28 endorses new declaration, but with no crude oil exit plan

    Dubai COP28 endorses new declaration, but with no crude oil exit plan..

    A new draft for the final declaration of the UN Climate Change Conference in Dubai does not include the clear phase-out of coal, oil and gas demanded by many countries...

  • PSFU, Dutch launch UGX14 bn renewable energy project

    PSFU, Dutch launch UGX14 bn renewable energy project..

    The Private Sector Foundation Uganda (PSFU) in partnership with the Netherlands Directorate General for International Cooperation (DGIS) have launched a renewable energy project worth 3.4 million Euros (about UGX14 billion), aimed at on increasing access to solar and clean cooking technologies in 13..

  • Relief as UNOC finally secures Kenyan oil import licence

    Relief as UNOC finally secures Kenyan oil import licence..

    The Uganda National Oil Company (UNOC) will effective next month start importing petroleum products through Kenya following the end of a bitter dispute between the two regional partners over direct oil imports through the Kenyan port of Mombasa...

  • Shell launches engine oil campaign for motorcycles

    Shell launches engine oil campaign for motorcycles..

    Shell Uganda has launched a new campaign to promote the use of Shell Advance AX5, a new premium quality 4-stroke motorcycle engine oil, which helps to clean and protect the engine by preventing the build-up of deposits and maintaining engine cleanliness. ..

  • Uganda getting set for 24,000 megawatts nuclear plant

    Uganda getting set for 24,000 megawatts nuclear plant ..

    Uganda's uranium exploration is gaining momentum to meet global energy demands, with plans for a 24,000MW nuclear power station by 2040, Irene Batebe, the permanent secretary for the ministry of Energy and Minerals Development, has said. ..

  • Dubai Businessman Maktoum awarded top national honour

    Dubai Businessman Maktoum awarded top national honour..

    President Yoweri Museveni has conferred the country’s top honour, the Order of the Crested Crane 1st Class Medal, upon Sheikh Mohammed Bin Maktoum Bin Jumah Al Maktoum from the United Arab Emirates (UAE), in recognition of his exceptional contribution to Uganda’s socio-economic transformation...

  • Goverment defends new Atomic Energy Bill

    Goverment defends new Atomic Energy Bill ..

    Environmental activists have put the Government on the defensive over the new Bill that it has drafted to replace the Atomic Energy Act of 2008...

  • Spiro unveils UGX3.8 million electric motorcycle

    Spiro unveils UGX3.8 million electric motorcycle..

    Spiro, a leading electric motorbike manufacturer and clean energy provider in Africa, has launched its electric motorcycles on the Ugandan market. ..

  • Global electricity demand set to soar in 2024/2025

    Global electricity demand set to soar in 2024/2025 ..

    The world’s demand for electricity is rising at its fastest rate in years, driven by robust economic growth, intense heatwaves, and increasing uptake of technologies that run on electricity such as Electric vehicles and heat pumps. Despite the enduring impacts of the global energy crisis, growth i..

  • TotalEnergies acquires stake in Bujagali Power Dam

    TotalEnergies acquires stake in Bujagali Power Dam..

    French energy giant TotalEnergies has signed an agreement with Scatec, a Norwegian renewable energy company, to acquire 100% of its subsidiary, SN Power...

  • Uganda, Kenya moot petrol pipeline plan revival

    Uganda, Kenya moot petrol pipeline plan revival..

    Regional counterparts Uganda and Kenya are set to revive a long-standing plan to construct a pipeline that will enhance the transportation of fuel between the two countries. The project, initially proposed in 1995, aims to establish a pipeline from Eldoret in western Kenya to Kampala in Uganda, with..

  • West Nile gets first National Grid connection

    West Nile gets first National Grid connection..

    The recent inauguration of the Kole-Gulu-Nebbi-Arua Transmission line by President Yoweri Kaguta Museveni marks a pivotal moment for the West Nile sub-region. This 132KV power line, worth a total investment of USD100 million (UGX 370 billion), connects the region to the national power grid for the f..

  • UK unveils UGX24 billion clean cooking initiative

    UK unveils UGX24 billion clean cooking initiative..

    The United Kingdom has launched an initiative aimed at revolutionizing Uganda’s cooking practices as part of an ambitious effort to transition 65% of Uganda’s population to cleaner cooking methods by 2030. ..

  • Uganda, 15 countries set for electricity trade

    Uganda, 15 countries set for electricity trade ..

    The Eastern Africa Power Pool (EAPP), an intergovernmental organization that was established to promote and coordinate the development of a regional power grid interconnection and cross-border electricity trade in Eastern Africa, is set to operationalize a competitive regional power market next year..

  • Optimism as 600MW Karuma Dam is commissioned

    Optimism as 600MW Karuma Dam is commissioned..

    The long-awaited 600MW Karuma Hydropower Dam has finally come online, raising hopes for a more industrialised and prosperous economy...

  • EU to spend EUR3.4 bn on renewable energy push

    EU to spend EUR3.4 bn on renewable energy push..

    The European Union (EU) has pledged EUR 150 billion (about UGX602 trillion) to support the energy transition in Sub-Saharan Africa over the next 15 years, as part of its Global Gateway strategy...

  • Electric boda boda cutting air pollution levels

    Electric boda boda cutting air pollution levels..

    On any given day in Kampala City, the streets are clogged with traffic, the air thick with exhaust fumes. In 2022, Kampala was on the list of the most heavily polluted cities worldwide, with pollution levels frequently exceeding WHO guidelines. The health impacts of air pollution, largely attribute..

  • Gov’t launches Buyende nuclear resettlement plan

    Gov’t launches Buyende nuclear resettlement plan..

    The government has officially launched a Resettlement Action Plan (RAP) to facilitate the construction of the country’s first nuclear power plant in Buyende District. ..

Most Recent

Popular Links