The long awaited Dangote refinery set to be commissioned later this month has announced plan to produce 650,000 barrels of refined products per day.
According to report, the commissioning would happen on May 22, 2023. The refinery is said to have been completed with pre-inauguration tests currently ongoing.
The multi-billion-dollar Oil Refinery and Petrochemical Company is expected to bring solutions to Nigeria’s perennial refining issues.
Dangote Refinery, which is the world’s largest single-train refinery, located in the Lekki Free Zone area of Lagos State, covers a land area of approximately 2,635 hectares, which is larger than the size of Victoria Island in Lagos.
Its pipeline infrastructure is the largest anywhere in the world, with 1,100 kilometres to handle three billion Standard Cubic Feet per day (Scf/d) of gas due to the large capacity of the refinery.
Reports say that the refinery has a 435MW-capacity power plant that is able to meet the total power requirement of Ibadan Electricity Distribution Company (IBEDC).
This could help the federal government’s efforts to make the country self-sufficient in local refining of crude oil to save the scarce foreign exchange used in the importation of petroleum products.
The Dangote refinery’s cost grew to $19 billion from initial estimates of between $12 billion and $14 billion, after years of delays.
Industry stakeholders also believed that the refinery when functional will reduce pressure on scarce foreign exchange usually sourced from parallel market. The capacity given the size of the refinery, marketers will now have products to supply and that will also ease hinderances that had brought about challenges in the sector
Also, the CEO of Centre for the Promotion of Private Enterprise(CPPE), Muda Yusuf noted that this will ease some of the pressure that the country has been experiencing around the importation of petroleum products; it may not totally eradicate the challenges of subsidy, but it will make it easier for us to have engagement on subsidy with stakeholders.