The Dangote Refinery in Nigeria has officially been commissioned. Touted as Africa’s largest oil refinery, the refinery is located in the Lekki Free Zone, a commercial hub of Lagos covering an area of 250,000 hectares.
The Pipeline Infrastructure at the refinery with 1,100 kilometers, is able to handle 3 Billion Standard Cubic Foot of gas per day. The Refinery alone has a 400MW Power Plant that is able to meet the total power requirement of Ibadan DisCo. The refinery additionally features a deep seaport, and a fertilizer unit.
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Boost to economy
The refinery is scheduled to begin operations in June, with the first products expected to hit the market by August. Once fully operational, it will have the capacity to process 650,000 barrels of crude oil per day.
Nigerian President Muhammadu Buhari, who commissioned the refinery, described it as a “notable milestone” and a “game changer” for the downstream petroleum products market, not only in Nigeria but also for the entire African continent.
The refinery is expected to meet Nigeria’s domestic demand for petroleum products and cater to global markets. Historically, Nigeria has heavily relied on fuel imports to meet local demand due to the underperformance of state-run refineries. This reliance on imports has led to significant foreign exchange drain as Nigeria swaps its crude oil for gasoline. The Dangote Refinery is seen as a significant development for Nigeria’s petroleum industry and has the potential to boost the country’s refining capacity and reduce its dependence on fuel imports.