Dangote Refinery Halts Production Unit over Leakages

The petrol-producing unit of the Dangote refinery has been forced offline following catalyst leaks and operational issues, with repairs expected to last at least two weeks, Reuters reported, citing industry sources.

According to market monitor IIR Energy, the 204,000 barrels-per-day Residue Fluidised Catalytic Cracking Unit (RFCCU) has been out of service since around 29 August.

Sources with knowledge of the matter, who spoke on condition of anonymity, confirmed the outage, while Dangote has yet to issue an official statement.

The shutdown marks another setback for Africa’s biggest refinery, which has expanded rapidly since opening last year and recently began reshaping global oil and fuel trade flows.

Its first gasoline cargoes to the United States are expected to arrive in New York later this month, according to ship-tracking firm Kpler.

Despite its scale and ambition, the refinery has faced a series of disruptions. In May, Reuters reported that the RFCCU was already expected to run at reduced capacity through October after earlier technical problems.

The current outage is tightening gasoline supplies in the Atlantic Basin, boosting profit margins for U.S. refiners.

Market data showed the U.S. gasoline crack spread, the premium of gasoline over crude, rose nearly 3 per cent on Wednesday, reaching its highest since 19 August, after surging more than 8 per cent on Tuesday