Dangote Confirms His Lagos Refinery Will Be Ready 2020
The petroleum refinery being built by Africa’s richest man, Aliko Dangote was billed to start operations this year but due to some unexpected delays, it is now billed for commissioning next year.
The billionaire told reporters in Paris on Monday that he is on schedule to finish the refinery by 2020 despite inherent challenges.
The oil refinery, which will be one of the world’s biggest, is situated in Lagos and will cost Dangote $15 billion, about 5.4 trillion naira.
It is designed to process 650,000 barrels of crude daily.
“There are quite a lot of challenges, but we’re moving,” Dangote told reporters at a conference in Paris about the plant. “We’re still targeting next year for commissioning.”
The 61-year-old said he will export about 35% of the refinery’s products, while the rest will serve the local market.
His Dangote Industries Ltd. said last year the plan is to produce about 50 million liters (13.2 million gallons) a day of gasoline and 15 million liters of diesel, though output can be changed according to demand.
The company has been in talks with oil traders including Royal Dutch Shell Plc, Vitol Group and Trafigura Group Pte about them supplying crude and buying refined fuel.
Perhaps you didn’t also know that the oil refinery complex will also house a $2.5 billion fertilizer factory with a capacity of 3 million metric tons annually, set to be ready this year, and a petrochemical plant.
They will be powered by gas, which will be sent from the Niger River delta via two 550-kilometer (341-mile) underwater pipelines, also costing Dangote about $2.5 billion.
“By next year, we’ll be exporting almost 2 million metric tons of urea and ammonia,” Dangote said.
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