There are signs that Dangote Refinery and about ten others across Africa may start providing an instant market for African crude oil in 2023 as the trend toward fossil fuels continues in affluent nations with fewer clients for Nigerian and other African crude.
Over 1.7 million barrels of crude oil per day would reportedly be taken from the world market by 11 refineries that are expected to start operating in 2023.
This occurs as the price of crude oil moved higher yesterday because to China's further opening up following COVID-19 and Russia's production cut hinting during the North American winter storm.
With regard to the foreign exchange issue, the stability of the continent's economy, energy security, and value addition, the 1.7 million bpd that refineries are anticipated to use could be a game changer.
But a major worry still lingers about how well-equipped nations like Nigeria are to supply crude oil.
Dangote Refinery (650,000 bpd), MIDOR expansion in Egypt (160 000 bpd), Assiut Hydrocracker (90 000 bpd), and Hassi Messaoud Refinery in Algeria are a few of the refineries anticipated to start up and their capacities (100,000 bpd).
Others include the Sentuo refinery in Ghana, the Cabinda Refinery in Angola, and the 100,000 barrels per day (bpd) Astron Restart in South Africa (120, 000).
The Port Harcourt Refinery Company (PHRC), one of the nation's petroleum refineries, is set to begin refining crude oil this month, according to the Nigerian Oil and Gas Suppliers Association (NOGASA).
The timeframe has been verified by Timipre Sylva, Minister of State for Petroleum Resources, and NOGASA President Benneth Korie.
Speaking to reporters in Abuja, Korie claimed that starting domestic refining again will help to resolve the problem of rising prices and a shortage of Premium Motor Spirit (PMS) gasoline.