Dangote Industries Limited, the diversified manufacturing conglomerate led by Africa's richest man Aliko Dangote, has delayed its petrol supply date due to crude oil supply issues. The refinery, initially set to start producing Premium Motor Spirit (PMS) in early August, is facing major operational challenges.
Dangote's $20 billion refinery faces setbacks amid crude oil supply issuesThe 650,000-barrel-per-day refinery was expected to ease Nigeria's fuel shortages. However, delays in securing crude oil have emerged as a critical bottleneck. Dangote, who had hoped the refinery would start producing petrol this month, is currently grappling with liquidity issues .
Fitch Ratings reports that Dangote might sell a 12.5% stake in the $20 billion refinery to a state-owned energy firm. This potential sale underscores the financial strain on the project.
Despite these obstacles, sources say petrol production should begin by the end of August, though crude oil supply remains a major concern. "All is set for the refinery to roll out petrol this month, but the constant supply of crude oil is essential to keep operations running smoothly," a top official, speaking on the condition of anonymity, revealed.
