Page 4 - DMEA Week 03 2023

DMEA COMMENTARY DMEA

Dangote rubbishes claims

of January refinery launch

After 10 years of planning and development, Nigeria’s Dangote refinery
appears set for launch, but not quite as soon as local reports suggest

AFRICA NIGERIAN media this week reported that the “Mechanical work on the refinery is complete
country’s largest oil refinery is set to be inau- and hopefully before the end of third quarter
gurated before the end of the month, follow- we should be in the market.” He added that the
WHAT: ing lengthy delays and billions of dollars of plant would “start with a processing capacity of
Nigeria is set to launch investment. 540,000 bpd. Full production can start maybe by
the continent’s largest The opening of the integrated refinery and the end of the year or beginning of 2023.”
refinery by the end of Q1, petrochemical complex, located in the Lekki While the launch date has slipped, the pro-
an event the industry has Free Zone near Lagos, is part of a joint effort by duction figures remain, with reports suggesting
been waiting more than a the Nigerian government and Dangote Indus- that the full capacity would be achieved later this
decade for. tries to create a competitive downstream sector year. Dangote had been expected to enter pro-
and make the country a net exporter, rather than duction last year; however, supply chain issues
WHY: importer, of petroleum products by 2026. related to the Covid-19 pandemic resulted in
Having previously Having previously expected to start produc- delays. These came in addition to previous fund-
been expected to start tion in September, the refinery is now expected ing challenges that have beset the project since its
production in September, to be commissioned by the end of March. How- conception in 2013.
the refinery is expected ever, this week local press quoted sources close to Following a meeting at the presidential villa
to be brought online proceedings as saying that the 650,000 barrel per in Abuja in 2022, CEO Aliko Dangote had previ-
in March, but reports day (bpd) unit would be inaugurated this month, ously said that the refinery would be completed
suggested it could come noting that President Muhammadu Buhari is by the end of the current administration. “By
into operation sooner. “expected to commission the Dangote refinery the grace of God, Mr President will come and
on January 24.” commission it (the refinery) before the end of his
WHAT NEXT: This was later denied by the company with term next year.”
Next: The wider impact corporate communications head Anthony Upon commissioning, the facility will more
on the Nigerian economy Chiejina telling Daily Trust: “The Dangote pet- than double Nigeria’s theoretical crude refin-
is anticipated to be rochemical refinery will be commissioned when ing capacity. However, in practice, the Nige-
profound, alleviating the all arrangements are concluded and a formal rian National Petroleum Corp. Ltd’s (NNPC)
significant burden of fuel announcement will be made to that regard.” three state-run facilities – Kaduna, Port Har-
import duties. The reports follow comments in mid-2022 by court and Warri – have been mothballed since
CEO Aliko Dangote, who said at the time that 2019 owing to chronic disrepair and reports

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