Dangote Refinery Supply to Hit Market by January, Airline Operators, Others Secure Position

• Airline operators are in talks with Dangote Refinery to get diesel, and JetA1 supplies locally
• This is because there are expectations that the refinery's diesel and JetA1 fuel will hit the market soon.
• It is expected that the meeting will help to determine if a deal will be struck with Dangote refinery

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The airline operators of Nigeria and local producers on the platform of the Manufacturers Association of Nigeria want Dangote Petrochemical Refinery to prioritise diesel and JetA1 supplies to local carriers and manufacturers.

This follows an earlier report that the Dangote Refinery received its first crude feedstock on December 7, 2023, to kickstart operations.

The report has further fueled indications that diesel and aviation fuel would hit the market by January 2024.

Airlines in talk with Dangote Refinery

Obiorah Okonkwo, the Chairman of United Nigeria Airlines and spokesperson for AON, told Punch that local carriers are in talks with the refinery's management on the possibility of getting the supply of JetA1.

Francis Meshioye, MAN president, also said that the association was meeting to determine whether an arrangement would be made with Dangote Refinery on the supply of diesel to its members.

He said:

“We are trying to get a proper position. Maybe in two days we will meet and have a proper position on this.”

Growing cost of fuel

Notably, the manufacturing and aviation sectors are becoming increasingly concerned that the nation's airlines and other industries may collapse entirely due to the escalating costs of aviation fuel and diesel.

According to the MAN, the growing cost of diesel is causing numerous factories across the states to close.

According to its half-yearly economic review, MAN said its members spent about N60.4 billion on alternative energy sources in the first half of 2023.

Operators became more concerned when diesel and aviation fuel costs jumped by more than 50% between June and October.

Alternative source of aviation fuel

Legit.ng reported earlier that the airline operators have said Nigeria is mature enough to find alternatives for aviation fuel, also known as JetAI, considering the high cost of imports.

Capt. Roland Iyayi, speaking on behalf of the Nigerian Airline Operators, pointed out that Nigeria now has a more significant opportunity to advance the exploration of palm oil as an alternative fuel for the aviation industry.

Jet A1 is the largest single cost component in airline operations, according to Chief Executive Officer Belujane Konzult and former Nigerian Airways spokesman Chris Aligbe.

They also stated that it would have a disastrous effect on airline operations.

After receiving its first supply, Dangote Refinery announces the arrival date for the next cargo

Legit.ng reported that the Dangote Petroleum Refinery and Petrochemicals plant has confirmed receiving one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO).

According to a statement by the company, the one million barrels represent the first phase of the 6 million barrels of crude oil to Africa's largest refinery and will sustain the initial 350,000 barrels per day to be processed by the facility.

The company announced that the NNPC would supply the next four cargoes in two to three weeks. It added that ExxonMobil would supply the final of the six cargoes.