Oil marketers in Nigeria are in the process of securing letters of credit (L/Cs) to buy petroleum products from the newly constructed Dangote Oil Refinery.

This landmark development in Nigeria's long-awaited efforts to become energy self-sufficient has begun the supply of petroleum products to the Nigerian domestic market, including diesel and aviation jet fuel.

The 650,000 barrels per day integrated refinery project in the Lekki Free Zone near Lagos, is expected to be Africa's biggest oil refinery and the world's biggest single-train facility.

L/C procurement

The Depots and Petroleum Products Marketers Association of Nigeria (DPPMAN) has revealed that its members are currently in the process of acquiring L/Cs to purchase petroleum products directly from Dangote.

"Our members are discussing with banks, and these talks have reached advanced stages. When we have our letters of credit, we will begin lifting products," according to executive secretary of DPPMAN, Femi Adewole.

Domestic and export potential

The infrastructure at the refinery is the largest anywhere in the world and, in addition to processing domestic feedstock, is designed to handle other African crudes, as well as supplies from further afield, including the US and Saudi Arabia.

The refinery is expected to meet 100 per cent Nigeria's requirement of all refined products and also have a surplus of each of these products for export.

Diesel and aviation fuel

Devakumar Edwin, a group executive at Dangote, confirmed the commencement of diesel and jet fuel distribution to the local market, highlighting that substantial quantities of certain products are now available.

"We have substantial quantities. Products are being evacuated both by sea and road. Ships are lining up one after another to load diesel and aviation jet fuel," Edwin explained.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.