Page 16 - DMEA Week 02 2023

DMEA NEWS IN BRIEF DMEA

Russia’s invasion of Ukraine on February naira exchange rate. infrastructure applications to construct
24, have led to a significant increase in oil He, however, expressed optimism that Borouge 4,” a statement said on Tuesday.
prices, Nigeria is unable to fully benefit from once the Dangote Refinery and Petrochemical The Borouge 4 project, owned by
the situation as it spends huge amounts on Plant commenced operations, the country ADNOC and Borealis, is expected to support
imported petroleum products annually. would be in a position to be able to save the continued development of the UAE’s
Thus, in its October 2022 Economic the huge amount of the FX it spends on the downstream and industry sector. Covering an
Report, the CBN stated: “Higher import bills, importation of petroleum products as well as area equivalent to almost 500 football pitches,
particularly, for petroleum products, coupled petrochemicals and that the apex bank would the facility will produce polyolefin solutions
with rising global prices, pushed merchandise in a better position to float the naira. Emefiele for various sectors, including infrastructure,
import northward. Consequently, aggregate stated at the time that “on the Dangote energy, advanced packaging and agriculture
import increased by 34.9 per cent to $4.64 Refinery, by the time it begins production across the Middle East, Africa and Asia
billion, from $3.44 billion in the preceding latest July next year, it is going to be a major Pacific.
month. source to save forex for Nigeria. Right now, According to Hazeem Sultan Al Suwaidi,
“The increase in import was driven by the overall forex we spend on imported CEO of Borouge, the latest deals signal
the rise in the import of petroleum products items, the importation of petroleum products the continued progress of the Borouge 4
to $1.24 billion, from $0.12 billion in consumes close to 30 per cent. project and are testament to the company’s
September 2022, to bridge domestic supply “By the time you add diesel, aviation fuel, commitment to the “In-Country Value”
gap. “Similarly, non-oil import rose by 2.5 per petrol and the rest of that which makes up programme of the UAE.
cent to $3.41 billion, from $3.32 billion in the the 30 per cent, the Dangote Refinery has the Ducab is expected to produce low-voltage
preceding month. In terms of share, non-oil capacity to produce 650,000 barrels per day. and medium-voltage cables to power Borouge
import accounted for 73.4 per cent, while oil There is a domestic component that is about 4, while UPI will use Borouge’s “Made in
constituted the balance of 26.6 per cent of the 455,000 barrels. Even if the 455,000 is what is UAE” solutions to produce pressure pipes for
total.” Also, in its Q3’22 Economic Report, sold to Dangote in naira alone, it is going to the cooling and public sanitation system of
the apex bank said: “Provisional data revealed be a major forex savings for Nigeria.” Analysts Borouge 4.
that merchandise imports fell by 8.9 per cent note that the Dangote Refinery is, however, ZAWYA
to $11.36 billion in 2022Q3, relative to $12.48 expected to finally start operations by the
billion in the preceding quarter. middle of this year. Borouge materials selected
“The development was observed, majorly, NEW TELEGRAPH
in the importation of non-oil products, which for Greater Cairo Metro
declined by 17.3 per cent to $7.63 billion, from
$9.22 billion. Conversely, import of petroleum PETROCHEMICALS project
products increased by 14.6 per cent to $3.73
billion from $3.26 billion. Borouge secures 2 new Borouge announced today that its block
“The increase in petroleum products polypropylene (PP-B) materials have been
import was to cover domestic supply deals worth $15mn selected by the consultant and contractor
shortages in the period. The share of non-oil of the engineering, procurement and
import remained dominant, accounting for Abu Dhabi-based petrochemicals company construction (EPC) works to manufacture
67.2 per cent of the total, while petroleum Borouge has secured two new contracts with drainage pipelines of the third line of the
products constituted the balance of 32.9 a combined value of AED 55 million ($15 Greater Cairo Metro project in Egypt.
per cent.” New Telegraph reports that CBN million). Through the partnership, Borouge will
Governor, Mr. Godwin Emefiele, had revealed The deals will be for the supply of provide its materials to Egyptian German
at the IMF/World Bank Annual Meetings in polyolefins to Ducab, one of the country’s Industrial Corporate (EGIC) to manufacture
2021 that Nigeria spends almost 40per cent of largest industrial manufacturing firms, and the drainage pipes for the third phase of the
its scarce foreign earnings on the importation Union Pipes Industry (UPI), a pipe maker third line of the metro project. EGIC approved
of petroleum products and petrochemicals, also based in the UAE. Borouge’s materials after thorough testing by a
a situation, he said, depletes the apex bank’s “Both companies will use Borouge leading German third-party laboratory.
dollar buffers, thus putting pressure on the materials to produce energy and Khalfan AlMuhairi, Senior Vice President

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