Home Uncategorized Dangote Group Is Building A $9 Billion Refinery

Dangote Group Is Building A $9 Billion Refinery

A senior official of the Dangote Group has said that the group is developing a new $9 billion oil refinery which will produce 500,000 barrels of oil per day and which will be completed in 2017.

The refinery, to be located in Lagos, will cut reliance on international markets for Africa’s largest oil producer, which imports more than 80 percent of its fuel needs.

“By the third quarter of 2017, we expect to be looking at commissioning,” Mansur Ahmed, Dangote Industries Ltd’s executive director of stakeholder management and corporate communications, told Reuters at an African refiners conference in Cape Town.

The refinery is being designed to process Nigerian crude mix and produce products conforming to Euro V fuel specifications, as fuel demands across the continent are forecast to rise rapidly with many countries enjoying strong economic growth.

Poor infrastructure, competitive global markets and financial constraints have traditionally held back Africa’s refining capacity, while fuel subsidies in Nigeria are also an issue, said Ahmed, who spoke on behalf of Aliko Dangote.

Ahmed said the refinery, which is being funded by debt and equity, including a $3 billion commitment from Dangote himself, could list in future should additional capital be needed.

 

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