Dangote’s Oil Refinery to boost Nigeria’s economy

Dangote's oil Refinery to boost Nigeria's economy

Nigeria and other African countries would soon set free a sigh of relief from the sloppy economic scenario occasioned by value instability with the upcoming completion of the Dangote’s standard oil refinery industrial in Lekki, Lagos, Federal Republic of Nigeria.

For Nigeria it is certain that once the refinery begins operation, the country itself, Ghana, and plenty of other African countries can profit greatly one way or another from the new development in view.

According to Reuters: With the progress made so far, it is speculated that the refinery would become operational in 2020, this is so because of the challenges of importing steel and other pieces of equipment.

Dangote first revealed his plan for the refinery way back in September 2013, once he proclaimed that he had secured  $3.3 billion in finance for the project, At the time, the refinery was calculable to a value of $9 billion.

The refinery set to be the largest single-train refinery in the world with one crude oil distillation unit. The refinery at full production will be able to produce 50,000,000 liters of gasoline and 17,000,000 liters of diesel daily as well as aviation fuel and plastic products equivalent to about 650,000 barrels of fossil oil daily transported via pipelines from oil fields within the Niger Delta, wherever gas will be sourced to provide the refinery fertilizer factory and be utilized in electrical generation for the refinery complex

The refinery is placed on a 6,180 acres (2,500 hectares) site at the Lekki, urban centre, in Lagos State.

Currently, the project’s predicted value is up to $15 billion in total, with $10 billion invested in the refinery itself, $2.5 billion within the refinery fertilizer factory, and $2.5 billion in pipeline infrastructure.

With a larger capacity than the full output of Nigeria’s existing purification infrastructure, the Dangote refinery is going to be ready to meet the country’s entire domestic fuel demand, as well as, export refined product.

Dangote petroleum refinery Company (DORC) says the 650,000 barrels per day refinery has been designed to process a variety of light and medium grades of crude in other to manufacture very clean fuels that meet Euro unit V specification.

The 650,000 BPD Dangote refinery can be a major contributor in helping Nigeria address its refined crude oil product downside of spending a giant piece of its budget on importing refined fuel.

A Dangote executive aforesaid the company may begin using the refinery’s tank farms as a depot to heat-up operations.

Sulphur in petroleum oil fuels leads to vehicle exhaust emissions that have a negative impact on health and surroundings. Nigeria has continued to be a home for fuels with terribly high sulphur contents (dirty fuels), and also the plausible ban on such product happens not to be having any impact.

Speaking on Promoting potency & clean Fuels in African purification and Petrochemicals Market at the Oil mercantilism and supplying (OTL) conference in an urban centre, Dangote’s cluster administrator, Devakumar Edwin, Group Executive Director of Dangote said;

Dangote refinery is an investment in most advanced units to provide euro V fuel in order to enable Nigeria, meet up the European Standard of gasoline.

“We will be able to complete the (refinery) project by the end of next year – mechanical completion,” Devakumar, said.

Director Business Strategy & improvement, Dangote refinery, Mr Srinivas Rachakonda, aforesaid that the development of the refinery can offer thousands of direct and indirect jobs and add worth to Nigeria’s economic development.

He noted that the refinery can result in significant skills transfer and technology acquisition opportunities within the country.

He aforesaid the cluster has begun a landmark integrated Refinery and Petrochemical project, considered the largest industrial complex in the history of Africa, that is predicted to take Nigeria to new heights through a transformation of the economy.

According to him, the Refinery will make sure that the protection of local supply of petroleum products is guaranteed as well as the availability of petrochemical feedstock (Poly-propylene & Polyethylene), which will be enough for the Nigerian market as well as neighbouring countries. Additionally, the Refinery will also produce Carbon Black feedstock and Sulphur.

With an invasive population and poor infrastructure, he says the refinery will reposition Nigeria as an attractive investment destination and a serious industrial hub in Africa.

He disclosed that the company has also invested in the East-West Offshore Gas Gathering System (EWOGGS) project that is predicted to unlock significant gas supply and help to reduce gas flaring in Nigeria. The primary part is expected to deliver gas to Dangote Industries, including the proposed fertilizer refinery in the refinery complex, and other identified industrial and power refinery users

Major Oil Marketers are urged to retool their methods to stay in business once Dangote refinery finally comes on stream.