Stakeholders see Dangote Refinery as key to transforming Nigeria’s economy

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

Mr. Devakumar Edwin, the Dangote Group Executive Director, 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, 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.

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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. In addition to Polypropylene Polyethylene, the Refinery will also produce Carbon Black feedstock and Sulphur.

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.

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.

Stanley 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. He said the refinery would open a sub-regional market with a West African price index for countries in the sub-region.

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.