Nigeria’s Dangote oil refinery has derated its gasoline-making unit (RFCC) by 34% since May 21 and expects the unit to resume full rates in mid-June, industry monitor IIR Energy said.
The refinery did not immediately respond to a Reuters request for comment.
“Initially, lighter crude being processed resulted in insufficient feed availability for the RFCCU. However, by the end of May, IIR Energy confirmed that the RFCCU was also facing an issue with its flue gas slide gate valve. Repair work on that issue is almost complete,” IIR said in an email.
The gasoline unit not running at full capacity could spell trouble for the local market, as fuel prices have reached record-high levels due to the impact of war in the Middle East.
Africa’s largest refinery became fully operational early this year and was designed to transform Nigeria into a major exporter of refined products after decades of inadequate refinery capacity.
Gasoline exports from the refinery fell to 17,000 barrels per day in May and stand at 10,000 bpd in June so far, according to data from commodities analytics firm Kpler, compared to highs since June last year, with 81,000 bpd in April.
- Nigeria's Dangote oil refinery has reduced its gasoline-making unit (RFCC) capacity by 34% since May 21, expecting full operation by mid-June.
- The derating was initially due to processing lighter crude, limiting feed availability, followed by a flue gas slide gate valve issue now almost fixed.
- The reduced gasoline output risks worsening fuel price spikes in Nigeria, already affected by the Middle East conflict.
- Dangote refinery, Africa's largest, went fully operational this year aiming to boost Nigeria's refined product exports after years of low capacity.
- Gasoline exports dropped sharply from 81,000 bpd in April to 17,000 bpd in May and just 10,000 bpd so far in June.
