Dangote Group Chairman, Aliko Dangote on Saturday, November 25 while appearing on an interview with the Financial Times revealed that the Companies state of the art oil refinery will begin operations in December.
According to Dangote, a deal is in place already for the first cargo. The deal is about 6 million barrels of crude for delivery in December 2023.
“We are starting with 350,000 barrels a day. The challenges that we faced, I don’t know whether other people can face these challenges and even survive.
It is either we sink, or we sail through. And we thank Almighty that at least we have arrived at the destination,” Dangote Stated.
Dangote further stated that he believes the $20 billion oil refinery, can produce a maximum capacity of 650,000 barrels a day.
Dangote Mega Project Description
The refinery sits on a 2,635 hectares, the project is described as the world’s largest “single-train” refining facility. This means it can process multiple products from one unit.
The mega deal will surpass the output of the country’s four state refineries. The refineries which can refine a combined 445,000 barrels per day. This state-of-the-art refinery promises to revolutionize the Nigerian oil industry.
Dangote, Africa’s richest man, revealed that the refinery is situated outside Lagos. The project required the construction of its own port, road, and infrastructure.
He further stated that extensive measures were undertaken during construction. This included included laying enough cable to circle the globe twice and moving 65 million tonnes of sand.
Despite facing delays and surpassing the initial cost estimate of $12-14 billion, the commissioning process began in May 2023.
The Nigerian National Petroleum Company Limited (NNPCL) supplying up to six crude oil cargoes for the initial phase.
Dangote expressed confidence in reaching the refinery’s full capacity by the end of 2024. However, the IMF remains skeptical about achieving more than a third of that by 2025.
The facility is now the world’s largest “single train” refinery. It aims to significantly reduce Nigeria’s foreign exchange spending on imported fuel.
Likewise, during the interview, Dangote emphasized the need for Nigeria, a major oil producer for over 50 years, to refine its own crude in substantial quantities. Additionally, he revealed plans to eventually float the refinery business as a separate company on the Lagos Stock Exchange.
Dangote Oil Refinery Benefit’s
The benefits extend well beyond the provision of refined fuels. The facility will generate a substantial 435 MW of electricity, alleviating the country’s power shortages.
Additionally, it will create over 130,000 job opportunities. It will also while inject an impressive $10 billion into the Nigerian economy annually.
The refinery’s considerable 40% export capacity means that West Africa will have a nearby option to meet their demands. It further brings the potential for fuel trade in local currencies. This will alleviate the dollar shortages experienced by many African countries.
For Nigeria alone, this means eliminating a foreign exchange bill of up to $26 billion.
One of the most remarkable aspects of the Dangote Petroleum Refinery is its capacity to meet 100% of Nigeria’s petroleum product demand, including gasoline, diesel, kerosene, and jet fuel.
Moreover, the facility features a state-of-the-art deep seaport with two quays capable of handling 25 tonnes/sq. meter loads, facilitating the export of fertiliser from its fertiliser unit and accommodating Panamax vessels.