Dangote Refinery Adapts Strategy Amid Technical Challenges to Sustain Petrol Output

Dangote Refinery has modified its operational strategy by shifting to processing lighter crude grades with an API gravity of 37-39 at its Lekki-based facility. This adjustment is in response to ongoing technical challenges, particularly the downtime of the Residue Fluid Catalytic Cracker (RFCC), a critical unit for petrol production.

Despite the RFCC remaining offline, the refinery's prioritization of lighter crude grades has enabled it to maintain operations and reduce the risk of significant disruptions in gasoline and middle distillate product supply. The refinery, heavily reliant on gasoline imports, has seen a surge in gasoline imports to around 45,000 barrels per day in January.

The facility is projected to run at an average of 350,000 barrels per day in the first quarter of 2026, with a potential increase to 400,000 barrels per day in the first half of the year, contingent on the gradual ramp-up of the RFCC. However, there are concerns about potential technical issues leading to further delays.

Dangote Refinery's operational stability is crucial for Nigeria's efforts to reduce fuel imports and ease foreign exchange pressures.