Dangote Refinery Will Transform Nigeria’s Economy

The 650,000 barrel capacity petrochemical refinery per day project being promoted by Dangote is capable of transforming  and diversifying  the Nigerian economy when completed.

The Dangote group executive director, Mr. Devakumar Edwin, while speaking during  a panel session on “Promoting Efficiency and Clean Fuels in African Refining and Petrochemicals Market at the Oil Trading and Logistics (OTL) conference in Lagos, yesterday described the refinery as one of the most strategic socio-economic projects in Nigeria, featuring the largest single train petroleum refinery in the globe with 650,000 bpd capacity.

Edwin, who was represented by the director Business Strategy and Optimization, Dangote Refinery, Mr Srinivas Rachakonda, 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. He said that the Sulphur in petroleum fuels results in vehicle exhaust emissions that have negative impact on health and environment.

According to him,  Dangote Refinery is investing in most advanced units to produce Euro V fuel due to help Nigeria meet the European Standard of gasoline, adding that the construction of the Refinery will provide thousands of direct and indirect jobs and add value to the Nigeria’s economic development.

He noted that the Refinery will lead to significant skills transfer and technology acquisition opportunities in the country. He said the company 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 as well as the neighboring countries.

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.

When the refinery becomes operational, Nigeria’s import of products would stop or reduce drastically, and the cost of products imports from Europe and Asia by smaller consuming countries around Nigeria would be expected to increase.

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.

Speaking on the impact of the conference, Akabogu stated: “This year’s event will further empower African oil and gas companies to harness the economic potential of the downstream sector in areas ranging from crude oil value addition to refining, to development of critical supply infrastructure across African States. Issues to be discussed include prospects for refining in Africa, finance for downstream trading and infrastructure projects, regional cooperation, mergers, takeovers and lots more.’’

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