NNPC conditions: Dangote refinery may dump local market, export petrol
In an epoch-making event that will positively transform Nigeria’s oil and gas sectoral landscape, President Muhammadu Buhari will commission Dangote Petroleum Refinery & Petrochemicals, alongside his counterparts from Ghana, Togo, Senegal, Niger, and Chad.
Dangote Refinery, established by Africa’s richest man, Aliko Dangote, is scheduled for commissioning today, May 22.
The petroleum refinery with a capacity to process 650,000 barrels per day (bpd) is sitting on 2,635 hectares of land located in Dangote Industries Free Zone in Ibeju-Lekki, Lagos, and will provide employment to over 100,000 persons.
The coming on stream of the gigantic project is expected to mark Nigeria’s exit from the league of oil rich nations which are heavy importers of the petroleum products.
Expected at the historic event apart from international dignitaries are Presidents of Togo, Gnassingbé Eyadéma; Ghana’s Nana Akufo-Addo; President of Senegal, Macky Sall; President of Niger Republic, Mohamed Bazoum, President of Chad, Mahamat Déby and a host of ambassadors; President Paul Kagame of Rwanda, who will not be physically present, will however present his goodwill message virtually.
As at the time of filing this report, all the 36 state governors and most of the governors-elect, ministers, senators, and captains of industries in Nigeria and others from outside the country, global oil traders, top international bankers, international multilateral agencies have indicated their readiness to grace the ceremony.
Nigeria’s President-elect, Bola Ahmed Tinubu whose administration as the governor of Lagos in 2002 floated the Free Trade Zone in Ibeju-Lekki where the Refinery is located, is expected to be at the event.
Meanwhile, the Manufacturers Association of Nigeria (MAN) said, the 650,000 barrels per day capacity Dangote Refinery could be the industrial renaissance the nation urgently needed.
MAN felicitated with the president and management of Dangote group on the completion and planned commissioning of its Petroleum Refinery located in Ibeju-Lekki, Lagos, being commissioned today
Director-general of MAN, Segun Ajayi-Kadir said: “The refinery which is situated on land spanning approximately 2,635 hectares is the World’s Largest Single Train 650,000 barrels per day Petroleum Refinery with a 9000 KTPA Polypropylene Plant ever built.
“It is gratifying to note that the Refinery can meet 100 per cent of Nigeria’s requirement for all refined products (Gasoline, 57 million litres per day; Diesel, 27 million litres per day; Kerosene, 11 million litres per day and Aviation Jet, nine million litres per day) and also have a surplus of each of these products for export.
“Therefore, the coming onboard of the Dangote Refinery promises to bring to a pleasant end, the nightmare of long queues at petrol filling stations and the disruption of social and economic activities that come with it.”
He added that the refinery, when fully operational, is expected to generate $10 billion from the export of refined petroleum products and save Nigeria an estimated $10 billion in foreign exchange.
According to him, with State-of-the-art technology, the refinery is designed to produce with 100 per cent Nigerian Crude and the flexibility to process other crudes from Africa, Middle East, and US Light Oil.
“It has a Self-sufficient Marine facility with the ability for freight optimization. With the Largest Single order of 5 SPMs anywhere in the world, Diesel & Gasoline Products from the refinery will conform to Euro V Specifications. The refinery design complies with the World Bank, US EPA, European emission standards, and the Department of Petroleum Resources (DPR) emission/effluent standards.
“To cushion the potential impact of increase in mean sea level due to global warming, the company took appropriate measures using the world’s largest, seventh and 10th largest dredgers to elevate the sea height by 1.5 metres.
“Dangote Group is one of the few companies in the world executing a Petroleum Refinery and a Petrochemical complex directly as an Engineering, Procurement, and Construction (EPC) Contractor. Globally, apart from three companies, no individual owner has done the complete EPC Contract for a Petroleum Refinery,” he pointed out.
Ajayi-Kadir stated that the Refinery offers the highest number of employees by any private company, including 100,000 indirect employment at retail outlets; 26,716 filling stations and 129 depots in Nigeria.
He added that the 16,000 trucks for transport will create additional jobs and, in the process, the company has trained over 400 artisans selected from host communities in the areas of Masonry, Carpentry, AC Electricians, Plumbing, Welders, Iron-benders and Auto Mechanics.
The commissioning of Dangote Petroleum Refinery is significant given that it is the first time that a refinery of such magnitude built by an individual is being commissioned.
Dangote’s petroleum refinery is expected to meet the needs of Nigerian consumers and those in neighbouring countries, while allowing for exports beyond the African continent. The refinery will drive the promotion of the African Continental Free Trade Area (AfCFTA) as over 50 countries in the trade bloc depend on imported refined petroleum products.
According to the Facts Sheet on Dangote Petroleum Refinery, the new Refinery can meet 100 per cent of the Nigerian requirement of all refined products (Gasoline, 53 million litres per day; Diesel, 34 million litres per day; Kerosene, 10 million litres per day, and Aviation Jet, 2 million litres per day) and also have surplus of each of these products for export.
“The refinery is designed for 100 per cent Nigerian Crude with flexibility to process other crudes. It has self-sufficient marine facilities with ability for freight optimisation, and the largest single order of 5 SPMs anywhere in the world. Diesel and Gasoline Products from the refinery will conform to Euro V specifications.
“The refinery design complies with World Bank, US EPA, European emission norms and Department of Petroleum Resources (DPR) emission/effluent norms. State-of-the-art technology. Designed to process a large variety of crudes including many of the African Crudes, some of the Middle Eastern Crudes and the US Light Tight Oil,” the Facts sheet added.
It also stated, “65 Million Cubic Metres of sand dredged costing approximately Euros 300 million, using the world’s largest, the second largest and the tenth largest dredgers to elevate the height by 1.5 metres, to insure against any potential impact of increase in mean sea level due to global warming. Bought over 1,209 units of various equipment to enhance the local capacity for site works.
“332 cranes to build up equipment installation capacity. Built the world’s largest granite quarry to supply coarse aggregate, stone column material, stone base, stone dust & material for break water. (10 million tonnes per year production capacity).
“Developed a port and constructed two quays with a load bearing capacity of 25 tonnes/ sq metres to bring Over Dimensional Cargoes close to the site directly. The company also constructed two more quays in the port with a capacity to handle up to Panamax vessels to export the fertiliser and the petrochemicals and two quays to handle liquid cargoes. The port will thus have six quays, including a Roll-on/Roll-off quay”, the sheet added.
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