‘Feedstock issues cut Dangote petrol production capacity’

The Dangote Petroleum Refinery has scaled back operations at its gasoline-producing unit by approximately 34 percent since May 21. Industry monitor IIR Energy attributes this reduction to a combination of feedstock constraints and technical challenges. This development occurs amidst global concerns over fuel supply disruptions and rising crude oil prices, fueled by geopolitical tensions in the Middle East.

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The Dangote petrochemical refinery reduced maximum operating capacity of its gasoline-making unit by 34 per cent since May 21 and expects the unit to resume full rates in mid-June, industry monitor IIR Energy said.

According to IIR Energy, the refinery's Residue Fluid Catalytic Cracking Unit (RFCCU), crucial for gasoline production, has been operating below its maximum capacity for several weeks. The unit is anticipated to resume full production rates by mid-June. The Dangote refinery did not immediately respond to requests for comment.

IIR Energy detailed that initial difficulties stemmed from the type of crude being processed, stating, "Initially, lighter crude being processed resulted in insufficient feed availability for the RFCCU." By the end of May, a further technical issue emerged concerning the RFCCU's flue gas slide gate valve, though repair work is reportedly nearing completion.

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Initially, lighter crude being processed resulted in insufficient feed availability for the RFCCU.

Despite the reduced output from the gasoline unit, the report indicates no immediate impact on fuel availability or pricing within Nigeria's domestic market. This comes at a time when international energy markets are experiencing renewed volatility. The 650,000 barrels per day capacity refinery, which began full operations earlier this year, was intended to end Nigeria's reliance on imported refined petroleum products and establish the country as a fuel exporter.

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By the end of May, IIR Energy confirmed that the RFCCU was also facing an issue with its flue gas slide gate valve. Repair work on that issue is almost complete.