Completion date for Dangote crude oil refinery- Africa’s largest oil refinery has been shifted to until the end of 2020 due to problems importing steel and other equipment.
Group Executive Director, Dangote Group, Mr. Devakumar Edwin announced the reports and said that the refining operation which was expected to begin at the facility early 2020 has been shifted, implying that it may start by early 2021. Mr. Devakumar added that the firm could start using the refinery’s tank farms as a depot to warm up operations despite the delays at the congested Apapa and Tin Can Island ports.
“We will be able to complete the refinery project by the end of next year – mechanical completion. We are also in talks with the Nigerian National Petroleum Corporation (NNPC), two other international oil companies and two large oil traders, who were all interested in supplying crude and buying products,” said Edwin.
Dangote crude oil refinery
The mega refinery being built at a large expanse of land at the Lekki Free Trade Zone in Lagos Nigeria, will have a capacity of 650 000 barrels per day (bpd) to help to reduce Nigeria’s dependence on imported petroleum. Despite being a crude oil exporter, Nigeria imports the bulk of its petroleum because of a lack of domestic refining capacity.
The tanks will be connected to five single point mooring buoys (SPMs), which will allow the refinery complex to pump crude straight into tanks from large ships at sea and pump products back out onto boats of any size
The project is being financed by lenders who committed approximately US $3bn, with the World Bank’s private sector arm providing US $150m and Dangote investing more than 60% from his own cash flow. The funding came through equity, commercial bank loans, export credit agencies and developmental banks
Once complete, the planned refinery and petrochemical complex is expected to account for half of Dangote’s sprawling assets. The facility has been viewed by many industry players and stakeholders as a game-changer for the African oil and gas industry, and will transform Nigeria from being a net importer of petroleum products to a net exporter.