| It was disclosed in Lagos during a facility tour of the Dangote oil refinery, the fertilizer plant, and the Dangote Jetty that the facility would begin to run between August and September this year. Aliko Dangote in the company of President, African Development Bank (AfDB), Dr. Akinwumi Adesina stated that mechanical work has been completed. Full output at the refinery might start by the end of the year or the beginning of 2023, according to Dangote. He praised the AfDB president and hinted that the country’s polypropylene facility will produce around a million tonnes therefore bringing about $1.6 billion in export earnings. He promised his visitor that Dangote Group would continue to do more to strengthen investment in the country, claiming that the company had been paying its taxes on time. Dangote went on to say that the Dangote Group has revitalized road infrastructure in Lagos’ Apapa and Isolo neighborhoods, as well as in Ogun and Kaduna, and that the company is also involved in the building of deep seaports and other infrastructure projects around the country. The plant will start with a processing capacity of 540, 000 barrels per day, Dangote said, with full-fledged activities expected by the end of the year. The facility which will cost an estimated $19 billion to build, has an installed capacity of 650, 000 barrels per day and was earlier scheduled to begin operation by the first half of this year. Its output would be more than enough to meet Nigeria’s fuel demand and turn Africa’s largest crude producer into an exporter of refined crude. Devakumar Edwin, Dangote Industries Limited’s Group Executive Director, Strategy, Portfolio Development and Capital Projects, stated the refinery complex, which includes a refinery, petrochemical plant, fertilizer plant, and a subsea pipeline project, is the world’s largest single-train refinery. The 650,000 barrels per day refinery, according to Edwin, will help Nigeria’s economy grow. According to Edwin, the Dangote Petroleum Refinery can meet 100% of Nigeria’s demand for all liquid products (gasoline, diesel, kerosene, and aviation jet) while also having surpluses for export. Mr. Edwin stated that this would generate a market for $11 billion in Nigerian crude per year and $9.9 billion in foreign exchange savings/earnings. A functional Dangote refinery is a major gamechanger in the scheme of things in the oil and gas industry, with it’s ripple effect spanning various aspects. The fact that Nigeria will boast of an optimal functioning refinery producing AGO/PMS/MGO/DPK will provide a cushion in terms of supply of the product to the end users. In regards to pricing of Petroleum Products, it cuts off the import and foreign refining cost. |
Source: Engineering News, Business Day, Narialand.
