The completion of Dangote Refinery in 2019 will mark one other milestone in the Nigerian oil and gas business as it holds the prospect of stopping the importation of refined petroleum merchandise by Nigeria.
The Dangote Refinery will produce 650,000 barrels per day of refined petroleum merchandise to satisfy all of the country’s refined petroleum merchandise wants.
It is going to even have spare volume for export to different countries.
Nigeria spent N2.Fifty nine trillion to import refined petroleum merchandise in 2016, according to the National Bureau of Statistics.
Dangote, the promoter, said that the refinery is primarily meant to diversify the resource base of Nigeria.
“This is the most important industrial site anywhere on the planet from the fertiliser, petrochemical and refinery Propylene Equipment plants. The Dangote Refinery will produce 650,000 barrels per day of refined petroleum merchandise to satisfy all of the country’s refined petroleum merchandise needs as well as export to other international locations.
“Our refinery will probably be 1.5 occasions the capability of all the present 4 refineries within the nation even when they’re working at a hundred per cent capacity.
“This is the only largest refinery on the planet. The petrochemical that we’ve got is 13 occasions larger than the Eleme Petrochemical built by authorities,Dangote said.
Vice President Yemi Osinbajo described the project as an unimaginable industrial endeavor, the biggest and most ambitious on the continent.
The Dangote Refinery is an integrated petro chemical complicated. Aside from refining crude oil to petroleum merchandise, it can also have petrochemical and fertiliser plants.
Mansur Ahmed, an Govt Director in Dangote Group, mentioned that the petrochemical plant would course of 1.Three million metric tonnes per annum of petrochemical products.
The refinery will even have the most important sub-sea pipeline infrastructure on the planet with capacity to handle three billion cubic metres of oil yearly.
The project is positioned in Lekki Free Trade Zone on a vast land mass of two,200 hectares, an area eight instances larger than your complete Victoria Island in Lagos.
In keeping with Mansur, the primary phase of the plant shall be ready by the end of 2017, the second phase by the tip of 2018, whereas the third and the graduation of the refinery shall be in 2019.
Nigeria with giant crude oil reserves and the biggest crude oil producer and exporter in Africa and eighth on the earth, nonetheless imports more than 80 per cent of its petroleum merchandise needs.
The country generally expertise embarrassing gasoline shortages due to import shortfall, strikes by oil staff and shutdowns of the three refineries, operated by NNPC.
The Port Harcourt Refinery has capability to supply 10.500 million mt/y (metric tonnes per 12 months) of refined merchandise, however it’s producing at lower than 20 per cent of this capability.
The Kaduna Refinery, in-built 1980, has capability to supply 5.5 million mt/y (110,000 b/d), whereas Warri Refinery, inbuilt 1978, has capability to provide 6.2 million mt/y (125,000b/d) of refined merchandise.
It is, due to this fact, excellent news that Nigeria will now host one in every of the biggest refineries on the earth after the Jamnagar Refinery in Gujarat, India, which produces 1,240,000 barrels per day.
The Dangote Refinery can be the largest in Africa surpassing South Africa’s Sapref Refinery, which produces 180,000 barrels per day and Cairo’s Mostorod Refinery with a capacity of 142,000 barrels per day.
Dangote has already provided $7 billion in fairness out of the $14 billion estimated complete price of the project.
Some Nigerian banks have offered a syndicated loan of $3.3 billion for the challenge.
The African Export-Import Financial institution (Afreximbank) has, in addition, promised to help the Dangote Group to entry foreign exchange and funding for the project.
Dr Okey Oramah, its President, gave the assurance during a tour of the project with the bank’s board members in 2016.
Oramah said that the board members determined to visit Dangote group to assess the project for potential monetary help.
He said that Dangote Group was making large impression throughout the continent, notably in Tanzania, The Gambia, Zambia, Niger and Cameroon .
“We are supporting them in what they’re doing in those nations, so we are equally supporting them on this ongoing venture, so it will be significant for the Board of Directors of Afreximbank to pay a courtesy visit to the location.
“It is necessary to return and see firsthand the undertaking that’s ongoing as a result of we are additionally planning to support them to ensure the undertaking is delivered on scheduled.
“We are taking a look at providing all necessary support both monetary and otherwise to ensure that the project is accomplished inside the time frame.
“We are additionally looking at providing assist widow for Dangote group that will be used to fund its tasks to completion.
“The impacts of the tasks will not be going to be felt in Nigeria alone but across Africa, particularly West Africa. So for us it’s a strategic partnership we’re constructing.
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