The Dangote Refinery and Petrochemical Company has announced plans to temporarily shut down its gasoline-producing unit for a 30-day maintenance period in June this year. According to industry monitor International Info Resources (IIR), this scheduled maintenance is set to commence on June 1.

The refinery, with a total processing capacity of 650,000 barrels per day (bpd), was established by Nigerian billionaire Aliko Dangote in Lagos. It began refining crude oil into products such as gasoil, naphtha, and jet fuel in January 2024. Gasoline production started later in September 2024. Despite its progress, the facility has not yet achieved full production capacity. As of early February, a refinery official confirmed that the plant was operating at 85 percent capacity. The scheduled maintenance is seen as an essential measure to ensure the refinery continues to improve its performance and meet increasing demand.

Several media reports suggest that once the scheduled maintenance concludes, gasoline production at the facility could see a boost if operations manage to scale up efficiently. According to several media reports, the maintenance could lead to improved gasoline output if the plant successfully ramps up production. Reports indicate that the temporary shutdown could influence gasoline exports from Europe to West Africa. Given that West Africa heavily relies on imported gasoline, this potential disruption may prompt European suppliers to increase their exports to meet regional demand. Analysts also believe that the maintenance shutdown may result in a temporary tightening of gasoline supplies within the Nigerian market.

Meanwhile, earlier this month, Dangote Refinery initiated talks with Nigeria's state oil company, the Nigerian National Petroleum Corporation (NNPC), to extend its crude supply agreement. The NNPC disclosed that it has so far delivered 48 million barrels of crude oil to the Dangote Refinery. Prior to this supply arrangement, the refinery faced challenges in securing sufficient crude, resorting to imports of US crude grades, including WTI Midland. The new deal with NNPC is expected to provide greater stability in crude supply, allowing the refinery to achieve more consistent output levels.

The Dangote Refinery is a significant component of Nigeria's energy infrastructure and plays a crucial role in reducing the country's reliance on imported petroleum products. With the capacity to refine 650,000 barrels of crude oil per day, it is the largest refinery in Africa and one of the largest in the world. This facility is expected to address Nigeria's long-standing energy challenges, especially regarding gasoline availability and pricing.

It is worth recalling that in September 2023, the Federal Executive Council, led by President Bola Tinubu, approved a policy permitting the sale of crude to local refineries in Naira, with corresponding purchases of petroleum products also conducted in Naira. This decision aims to support the nation's refining capacity and reduce dependence on imported fuel products. Industry observers have welcomed this policy as a strategic move to improve energy security and stabilize fuel prices in Nigeria.

As the Dangote Refinery prepares for its June maintenance, stakeholders in the energy sector are closely monitoring developments, with expectations that the refinery will resume operations stronger and more efficient than before.