May 29, 2024 18:02 GMT
Nigeria’s Dangote Refinery Likely to See Teething Problems: OPIS
OIL PRODUCTS
Nigeria’s new 650k b/d Dangote refinery is not expected to have a major impact on North Atlantic product flows until 2025, according to OPIS.
- The refinery’s executives said that it could begin exporting diesel in June, with a goal to produce on-spec gasoline too.
- However, Morgan Stanley does not expect regular on-spec gasoline exports until 2025. The sulphur content from the gasoline currently produced by Dangote is 40-50 times the EU or US limit.
- Goldman Sachs also see likely delays to Dangote’s startup, expecting only 800k b/d of net capacity additions in the global refinery development pipeline from 2024-2027.
- While Dangote has introduced a hydrocracker to remove sulphur, experience from other refineries suggests that it often takes at least a year for desulphurisation equipment to hit its planned targets.
- RBN expects Dangote to ramp up to just 20% utilisation in 2024, with peak runs no earlier than 2026, OPIS said.
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