The completion of Dangote Refinery in 2019 will mark another milestone in the Nigerian oil and gas industry as it holds the prospect of stopping the importation of refined petroleum products by Nigeria.
The Dangote Refinery will produce 650,000 barrels per day of refined petroleum products to meet all the country’s refined petroleum products needs.
It will also have spare volume for export to other countries, the News Agency of Nigeria reports.
Nigeria spent N2.59 trillion to import refined petroleum products 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 biggest industrial site anywhere in the world from the fertiliser, petrochemical and refinery plants. The Dangote Refinery will produce 650,000 barrels per day of refined petroleum products to meet all the country’s refined petroleum products needs as well as export to other countries.
“Our refinery will be 1.5 times the capacity of all the existing four refineries in the country even if they are working at 100 per cent capacity.
“This is the single largest refinery in the world. The petrochemical that we have is 13 times bigger than the Eleme Petrochemical built by government,” Dangote said.
Vice President Yemi Osinbajo described the project as an incredible industrial undertaking, the largest and most ambitious on the continent.
The Dangote Refinery is an integrated petro chemical complex. Apart from refining crude oil to petroleum products, it will also have petrochemical and fertiliser plants.
Mansur Ahmed, an Executive Director in Dangote Group, said that the petrochemical plant would process 1.3 million metric tonnes per annum of petrochemical products.
The fertiliser plant will produce 2.8 million metric tonnes of assorted fertiliser, while the gas plant will produce three million cubic metres of gas per annum.
The refinery will also have the largest sub-sea pipeline infrastructure in the world with capacity to handle three billion cubic metres of oil annually.
The project is located in Lekki Free Trade Zone on a vast land mass of 2,200 hectares, an area eight times bigger than the entire Victoria Island in Lagos.
According to Mansur, the first phase of the plant will be ready by the end of 2017, the second phase by the end of 2018, while the third and the commencement of the refinery will be in 2019.
Dangote has already provided $7 billion in equity out of the $14 billion estimated total cost of the project.
Some Nigerian banks have provided a syndicated loan of $3.3 billion for the project.
The African Export-Import Bank (Afreximbank) has, in addition, promised to assist the Dangote Group to access foreign exchange and funding for the project.