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Dangote oil refinery project timeline and what you need to know

Dangote oil refinery is a 650,000 barrels per day (bpd) integrated refinery and petrochemical project under construction in the Lekki Free Zone near Lagos, Nigeria. It is expected to be the Africa’s biggest oil refinery and the world’s biggest single-train facility, upon completion in 2020. The US $12bn project is being developed by Dangote Oil Refinery, a company owned by Dangote group and is expected to generate 9,500 direct and 25,000 indirect jobs.

The refinery is expected to process a variety of light and medium grades of crude to produce Euro-V quality clean fuels including gasoline and diesel as well as jet fuel and polypropylene.

The processing facilities include a crude distillation unit (CDU) and associated facilities, a mild hydrocracking (MHC) unit, a residual fluid catalytic cracking (RFCC) unit, a naphtha hydrotreater, and a gasoline hydrodesulfurisation (HDS) unit as well as alkylation units.

The refinery complex will also house sulphur recovery and hydrogen generation facilities and a polypropylene unit. Comprising two steam methane reformer (SMR) units, the hydrogen generation facility will generate 200,000Nm³/h of hydrogen and steam to produce sulphur-free fuels.

The other processing units at the refinery include the STRATCO® alkylation unit, the MECS® sulphuric acid regeneration (SAR) unit, the MECS® DynaWave® sulphur recovery unit, and the BELCO® EDV® fluid catalytic cracking unit. The refinery is designed to produce up to 50 million liters of gasoline and 15 million liters of diesel a day.

The refinery is expected to produce 10.4 million tonnes (Mt) of gasoline, 4.6Mt of diesel, and 4Mt of jet fuel a year. It will also produce 0.69Mt of polypropylene, 0.24Mt of propane, 32,000t of Sulphur, and 0.5Mt of carbon black feed yearly.

Financing

A group of local and international banks led by Standard Chartered Bank has agreed to provide a US $3.3bn syndicated loan facility for the project. furthermore, the United States Trade and Development Agency is providing US $0.997m training grant for the human resource development for the refinery operation.

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Timeline
2013

Nigerian Businessman Aliko Dangote unveiled plans for the new refinery. He announced that he had secured about US $3.3bn financing for the project.

2016

Construction began with excavation and infrastructure preparation works. planned completion was scheduled for late 2018.

2017

Major structural construction began, and Aliko Dangote estimated that the refinery would be mechanically complete in late 2019 and commissioned in early 2020.

2018

In January Dangote Group and Mammoet signed a contract that will see the global leader in engineered heavy lifting and transport, transport, lift and install all over-dimensional cargo for the refinery.

2019

In August, the world’s largest atmospheric tower was built for the Refinery. The huge atmospheric tower was built by Sinopec, a frontline energy and chemical company in China.

In October, pilling works were completed. According to Group Executive Director (GED), Strategy, Capital Projects and Portfolio Development for Dangote, Mr. Edwin Devakumar, the pilling work was a 148,000 pile, making it a construction project with the largest number of piles in the world. He added that the civil works and underground works have been completed while the super structure work and some of the building works are coming up.

In November, concrete machinery company Elkon announced that, Dangote Group had purchased 4 units ELKOMIX – 135 Stationary Concrete Batching Plant for the giant project. ELKOMIX – 135 Stationary Batching Plant which is equipped with 4500/3000 l. Twinshaft Mixer with its high-efficient mixing system provides up to 120-135 m3 concrete per hour. The configuration has T type aggregate weighing system, T type aggregate weighing system provides faster aggregate weighing time with 2 separate aggregate weigh hopper.

2020

In July, Devakumar Edwin Dangote Industries Executive Director announced that Dangote refinery is set to be operational in early 2021. Mr. Edwin said that they had initially planned to complete the mechanical works, which would mean the completion of the entire project, by the end of this year and to commission the plant in January next year but there has been a shift of 2 months maximum which he says it is still within the time frame of completion.

He further added that they have laid out plans to catch up with the delay period and they are trying to put it into action. If it works out well, they will still be able to maintain the original completion dates and if it doesn’t, the maximum delay period will be 2 months.

Dennis Ayemba
Country/ Features Editor, Kenya

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