5 African leaders join Buhari in launching Dangote Refinery today
President Muhammadu Buhari of Nigeria, along with his counterparts from Ghana, Togo, Senegal, Niger, and Chad, will commission the Dangote Petroleum Refinery & Petrochemicals in a momentous occasion that will have a positive impact on the landscape of the oil and gas sector in Nigeria. This event will be a game-changer.
Today, May 22, is the day that the Dangote Refinery, which was founded by Africa’s wealthiest man, Aliko Dangote, will officially open for business.
The oil refinery will employ more than one hundred thousand people and has the capability of processing 650,000 barrels of crude oil every single day (bpd). It is situated on 2,635 hectares of land in the Dangote Industries Free Zone in Ibeju-Lekki, which is located in Lagos.
It is anticipated that the completion of the enormous project will mark Nigeria’s exit from the league of oil-rich nations that are also significant consumers of petroleum products.
Togo’s President Gnassingbé Eyadéma, Ghana’s Nana Akufo-Addo, Senegal’s President Macky Sall, Niger Republic’s President Mohamed Bazoum, Chad’s President Mahamat Déby, and a host of ambassadors are among those who are anticipated to attend the historic event. President Paul Kagame of Rwanda, who will not be physically present but will present his goodwill message virtually instead of attending the event in person.
As of the time this report was written, all 36 state governors and the majority of the governors-elect, ministers, senators, and captains of industry in Nigeria, as well as others from outside the country, global oil traders, top international bankers, and international multilateral agencies, have indicated that they are prepared to attend the ceremony.
It is anticipated that Nigeria’s President-elect, Bola Ahmed Tinubu, will be present at the event. Tinubu’s administration as governor of Lagos in 2002 was responsible for establishing the Free Trade Zone in Ibeju-Lekki, which is where the Refinery is located.
Meanwhile, the Manufacturers Association of Nigeria (MAN) stated that the Dangote Refinery, which has the capacity to process 650,000 barrels of oil per day, has the potential to usher in the industrial renaissance that the country so desperately requires.
MAN extended its congratulations to the president and management of the Dangote group on the completion and planned commissioning of the Dangote Petroleum Refinery located in Ibeju-Lekki, Lagos, which is being inaugurated today.
“The refinery, which is situated on land spanning approximately 2,635 hectares, is the World’s Largest Single Train 650,000 barrels per day Petroleum Refinery with a 9000 KTPA Polypropylene Plant ever built,” said the Director-General of MAN, Segun Ajayi-Kadir. “The refinery is the World’s Largest Single Train Polypropylene Plant.”
“It is heartening to learn that the Refinery is capable of fulfilling one hundred percent of Nigeria’s demand for all refined products (gasoline, 57 million litres per day; diesel, 27 million litres per day; kerosene, 11 million litres per day; and aviation jet, nine million litres per day), in addition to having a surplus of each of these products available for export.
“Therefore, the coming onboard of the Dangote Refinery promises to bring to an end in a pleasant way the nightmare of long queues at gasoline filling stations and the disruption of social and economic activities that come with it,”
In addition, he stated that once the refinery is fully operational, it is anticipated that it will save Nigeria an estimated $10 billion in foreign exchange while simultaneously generating $10 billion in revenue from the export of refined petroleum products.
According to him, the refinery is equipped with state-of-the-art technology, and it is designed to produce with one hundred percent Nigerian Crude while also having the flexibility to process other crudes from Africa, the Middle East, and the United States Light Oil.
“It is equipped with a Self-sufficient Marine facility that possesses the capacity for freight optimization. Diesel and gasoline products coming from the refinery will be in compliance with Euro V Specifications thanks to the largest single order of five SPMs ever placed anywhere in the world. The design of the refinery meets the emission and effluent standards set forth by the World Bank, the United States Environmental Protection Agency (EPA), European Union (EU), and the Department of Petroleum Resources (DPR).
“To cushion the potential impact of an increase in mean sea level due to global warming, the company took the appropriate measures, including using the world’s largest, seventh and 10th largest dredgers to raise the height of the water by 1.5 meters.
“Dangote Group is one of the few companies in the world capable of directly executing both a petroleum refinery and a petrochemical complex as an Engineering, Procurement, and Construction (EPC) Contractor. According to him, “globally, apart from three companies, no individual owner has done the complete EPC Contract for a petroleum refinery.” He drew attention to the fact that only three businesses had accomplished this feat.
According to Ajayi-Kadir, the Refinery has the highest number of employees out of any private company. This number includes the 100,000 people who are employed indirectly at retail outlets, 26,716 filling stations, and 129 depots across Nigeria.
He went on to say that the 16,000 trucks that will be used for transport will result in the creation of additional employment opportunities, and that the company has already trained over 400 artisans from the communities that will be hosting the trucks in areas such as masonry, carpentry, plumbing, welding, iron-bending, and auto mechanics.
It is extremely significant that the Dangote Petroleum Refinery is being commissioned because this is the very first time that a refinery of such magnitude that was built by an individual is being commissioned.
It is anticipated that Dangote’s petroleum refinery will be able to satisfy the demands of Nigerian consumers as well as those of consumers in neighboring countries, while also enabling exports to countries outside of Africa. Because more than half of the countries that make up the African Continental Free Trade Area (AfCFTA) are dependent on imported refined petroleum products, the refinery will be a driving force in the promotion of the AfCFTA.
According to the Facts Sheet on the Dangote Petroleum Refinery, the new refinery has the capacity to meet one hundred percent of Nigeria’s demand for all refined products (Gasoline, 53 million litres per day; Diesel, 34 million litres per day; Kerosene, 10 million litres per day; and Aviation Jet, 2 million litres per day), as well as have a surplus of each of these products available for export.
The refinery was built to process 100 percent Nigerian crude, but it also has the capability of handling other types of crude. It has self-sufficient marine facilities, the ability to optimize freight, and the largest single order of five SPMs of any location in the world. Products derived from the refinery, including diesel and gasoline, will adhere to the Euro V specifications.
“The refinery design complies with emission/effluent norms established by the World Bank, the United States Environmental Protection Agency (EPA), the European Union, and the Department of Petroleum Resources (DPR).” technology that is at the cutting edge currently. According to the Facts sheet, “Designed to process a large variety of crudes including a significant portion of the African Crudes, a portion of the Middle Eastern Crudes, and the United States Light Tight Oil.”
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In addition to this, it was stated that “65 Million Cubic Metres of sand would be dredged at a cost of approximately Euros 300 Million, using the world’s largest, the second largest, and the tenth largest dredgers to elevate the height by 1.5 Meters, to insure against any potential impact that could be caused by an increase in mean sea level due to global warming.” A total of over 1,209 different pieces of equipment were purchased in order to improve the local capacity for site works.
“332 cranes to increase the capacity for the installation of equipment. In order to meet demand for coarse aggregate, stone column material, stone base, stone dust, and material for break water, the largest granite quarry in the world was constructed. (10 million tonnes of production capacity per year).
“Developed a port and constructed two quays with a load bearing capacity of 25 tonnes/sq metres in order to bring Over Dimensional Cargoes directly close to the site.” The company also built two additional quays in the port with the capacity to handle up to Panamax vessels in order to export the fertilizer and the petrochemicals. Additionally, the company constructed two quays in order to handle liquid cargoes. According to the sheet, this means that the port will have a total of six quays, one of which will be a roll-on/roll-off quay.