During a technical presentation concerning the refinery’s operations, David Birld clarified that the imports previously regarded as finished products are, in fact, intermediate feedstock.
He revealed that the Dangote Refinery, unlike those from Saudi Arabia, Kuwait, or the United Arab Emirates, was not built at the end of crude pipelines.
Instead, the refinery models those built in Europe, Singapore, and Taiwan, which operate as merchant refineries: facilities that depend on crude oil and other feedstocks from numerous sources and are capable of processing an array of crude and intermediate components.
“Nigeria is a crude-producing country, but Dangote Refinery does not sit on the end of a pipeline just processing the country’s crude oil only. Dangote is a merchant refinery,” Bird said.
Further addressing the strange idea that a functioning refinery would import finished petroleum products, the managing director explained that Dangote Refinery’s design houses more storage tanks than processing units, allowing crude and feedstock variations to be segregated, blended, and processed in different combinations.
“You bring in different crudes. You need to segregate those crudes, and then you mix them to make certain crude cocktails which your plant can process,” he explained.
During the presentation, as reported by the Punch Newspaper, Bird explained to members of the press that processing multiple crude blends can result in inadequate utilization of certain units if additional feedstocks are not introduced.
Each crude produces different amounts of products, including LPG, naphtha, kerosene, and diesel.
“It’s all about utilisation. Just like an aeroplane or a hotel, once you build it, you want to drive occupancy. The same principle applies to refining,” he said.
In a nutshell, the managing director relayed that what is believed to be the finished product Dangote is importing is more so semi-finished.
“I am a refinery. I have no interest in importing finished products. But I will be importing intermediate feedstocks and components,” he stated.
He emphasized that certain of the imported materials include high-sulfur reformate, which other facilities export due to their inability to properly process it.
“We have the capability to process these into Euro 5 specification gasoline. This should never end up in a petrol pump,” he said.
According to Bird, Dangote’s proven export capabilities present a more noteworthy conversation.
“Our product can land anywhere in the world because we make the latest specifications,” he stated.
“Nigeria should be incredibly proud because of the public health benefits that come from having a domestic refining industry that produces fuels to the latest world standards,” he added, noting that this has considerable public health benefits.
