Breaking News

Dangote alters Nigeria’s fuel supply template


Nigeria’s 40 million litres per day average petrol supply template has been altered by the Dangote Oil Refinery Company (DORC) through which fuel in excess of over 25.4 million litres are billed to be produced in-country.
Group Executive Director, Dangote Refinery, Mr. Devakumar Edwin, gave this hint at a panel session at the Oil Trading and Logistics (OTL) conference in Lagos yesterday.
Specifically, he said that the 650, 000 barrels per day refinery is billed to produce 65.4 million litres daily.
“The refinery will transform and diversify the Nigerian economy when completed,” he said.
Speaking in a panel session on “Promoting Efficiency and Clean Fuels in African Refining and Petrochemicals Market,” Edwin, who was represented by the Director, Business Strategy and Optimization, Dangote Refinery, Mr. Srinivas Rachakonda, described the refinery as one of the most strategic socio-economic projects in Nigeria, featuring the largest single train petroleum refinery in the globe (650,000 bpd).
He said that Dangote Oil Refinery Company (DORC) has been designed to process a variety of light and medium grades of crude and produce extremely clean fuels that meet Euro V specification.
Noting that the Sulphur in Premium Motor Spirit (PMS) results in vehicle exhaust emissions that have negative impact on health and environment of the country, Edwin said; “Dangote Refinery is investing in most advanced units to produce Euro V fuel due to help Nigeria meet the European Standard of gasoline.”
The construction of the Refinery “will provide thousands of direct and indirect jobs and add value to the Nigeria’s economic development.
Besides, he said that the Refinery would lead to significant skills transfer and technology acquisition opportunities in the country.
He said that the Group has embarked on a landmark integrated Refinery and Petrochemical project, regarded as the largest industrial complex in the history of Africa, which is expected to take Nigeria to new heights through transformation of the economy.
According to him, the refinery will ensure that the security 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 and neighbouring countries.
“In addition to Polypropylene Polyethylene, the refinery will also produce Carbon Black feedstock and Sulphur,” he said.
With a fast-growing population and poor infrastructure, he said the refinery will also reposition Nigeria as an attractive investment destination and a major industrial hub in Africa.
He disclosed that the company has also invested in the East-West Offshore Gas Gathering System (EWOGGS) project, which is expected to unlock significant gas supply and help to reduce gas flaring in Nigeria.
Besides, he said that the first phase is expected to deliver gas for the use of Dangote Industries, including the proposed fertiliser plant in the refinery complex and other identified industrial and power plant users.
Speaking during the session, former Executive Secretary of the Petroleum Product Pricing Regulatory Agency (PPPRA), Mr. Reginald Stanley, said Dangote Refinery is going to be a game changer for the entire African downstream industry.
He said that the refinery would attract global attention and market when completed, adding that the initiative has raised hope for other African countries on the viability of investing in a huge refinery.
In his welcome address, Chairman, OTL Africa Downstream, Mr. Emeka Akabogu, said recent market tendencies have shown appetite for some categories of investment in the downstream value chain.
He noted that there have been considerable investments in retail outlet development, marine logistics platforms and storage facilities across the country, while several refinery projects that aim to balance the discrepancy caused by inadequate refining capacity on the continent are currently underway.

No comments