Page 4 - DMEA Week 31

DMEA COMMENTARY DMEA

Nigeria pins hopes on

Dangote refinery

Nigeria is banking on the Dangote refinery to end its reliance on fuel imports,
but plans to modernise its existing plants are at a standstill

NIGERIA NIGERIA is counting on the giant Dangote conglomerate Dangote, run by Nigerian busi-
refining complex starting up next year to help ness mogul Aliko Dangote.
WHAT: reduce its sizeable fuel import bill, at a time In early July, the Netherlands’ Mammoet
The 650,000 bpd Dangote when its economy is reeling from the corona- finished the transport and lifting of heavy com-
refinery is scheduled virus (COVID-19) pandemic and the oil price ponents at the refinery, while Swiss supplier Sul-
to start production next collapse. However, it looks increasingly likely zer said it had finished the design and supply of
year, but delays look that the ambitious project will fall further behind internals for all of the refinery’s columns.
probable. schedule. Dangote recently said the technical comple-
Nigeria is Africa’s biggest oil producer. But tion of the plant was likely to be pushed back
WHY: the country relies heavily on comparatively from December this year to February or March
It is hoped that the $10bn expensive fuel imports as its main state-run 2021. Some disruptions have been caused by
project will end Nigeria’s refineries have fallen into disrepair, as successive COVID-19 restrictions on movement. Com-
reliance on costly fuel governments have failed to adequately invest in missioning is due to begin thereafter, according
imports and even provide their upkeep. to Dangote, with the facility reaching its full pro-
the country with a surplus The 650,000 barrel per day (bpd) Dangote duction capacity around six months later.
for exports. refining project has been hailed as the answer. However, recent setbacks may be more signif-
The plant, situated in the Lekki free trade zone icant than Dangote has admitted.
WHAT NEXT: (FTZ) near Lagos, will be Africa’s largest. It will “Given the string of delays the project has
Nigeria needs to push consist of a single primary refining train, along already faced since it was first announced in
ahead with fuel market with polypropylene and urea production units 2013, late 2021 or early 2022 would appear to be
deregulation and advance and gas processing facilities. It will be capable of a more realistic time for completion,” Ian Simm,
other refining projects, producing enough fuel not only to meet domes- principal advisor at consultancy IGM Energy,
including upgrades at tic demand but provide Nigeria with a surplus told NewsBase.
its existing plants and for export. For its part, Sulzer revealed in its state-
modular refineries. Behind the $10bn venture is private ment that the refinery was not expected to be

P4 www. NEWSBASE .com Week 31 06•August•2020