Dangote’s new US$9 billion oil refinery, which will have a designed production capacity of 500 000 bpd, is expected to come onstream by 2017. The refinery, located close to the Nigerian city of Lagos, is expected to reduce the country’s reliance on international markets, according to Mansur Ahmed, Dangote Group Stakeholder Relations Director.
During a speech at the African Refiners Association Conference in Cape Town, Ahmed noted that Nigeria relies on imports to meet more than 70% of its needs. Currently, the four state refineries are operating well below their designed capacities (total of 450 000 bpd) due to poor maintenance and ageing equipment. “The current domestic refining capacity has been whittled down to less than 10% of the capacity that exists,” Ahmed said. “There is currently demand of over 500 000 bpd in Nigeria.”
The new refinery, which was funded by debt and equity, will process Nigerian crude mix and produce products conforming to Euro V fuel specifications. Basic design has been completed and site development is set to commence in a few weeks’ time. “By the third quarter of 2017, we expect to be looking at commissioning,” said Ahmed.
Edited from various sources by Rosalie Starling
Sources: Reuters, Bloomberg, The News Nigeria