‘Naira will become stronger once the refinery starts production
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has disclosed that Dangote Petroleum Refinery is now 97 percent completed and will pump out fuel any moment soon.
The agency also commended the work done on the project. The refinery, with 650,000 barrels per-day installed capacity, is expected to double the total output of Nigeria’s ailing refining infrastructure and meet 100 percent of its requirement for all refined products.
The regulatory agency for the sector disclosed in Abuja when representatives of Dangote Petroleum Refinery visited its office to present the 2022/2023 work plan for the facility.
The successful completion of Africa’s biggest petroleum refinery and the world’s largest single-train facility is expected to have a significant impact on Nigeria’s foreign exchange, through import substitution and substantial savings in earnings.
It is expected that once the refinery commences production, pressure on the nation’s currency will reduce and a significant inflow of forex will come through sales from the facility.
On completion, it is estimated that Nigeria will import zero petroleum oil products – down from the approximately $50 billion current oil product imports per year.
The agency’s Chief Executive, Mr. Farouk Ahmed, reiterated the importance of the refinery to the country, assuring that NMDPRA will give all necessary support to ensure timely completion and the kick-start of operations.
Speaking on the project, the Group Executive Director, of Strategy, Portfolio Development & Capital Projects, Dangote Industries Limited, Mr. Devakumar Edwin, said it (refinery) would stimulate economic development in Nigeria.
According to him, the facility can meet 100 percent of Nigeria’s requirement of all liquid products (gasoline, diesel, kerosene, and aviation fuel), with a surplus for export.
He said: “The high volume of petrol output from the refinery will transform Nigeria from a petrol import-dependent country to an exporter of refined petroleum products.”
On employment generation, he said over 30,000 people are currently working at the site through various contractors, noting that when operational, the refinery will generate over 100,000 direct and indirect jobs for youths.
On local content development, Edwin said the company has trained over 600 artisans selected from host communities in the areas of masonry, plumbing, welding, iron bending, auto mechanics, etc.
The refinery design, according to the company, conforms to the standards of the World Bank, United States, United States Environmental Protection Agency, the European Union (EU), and NMDPRA.
The refinery has its dedicated steam and power generation system, with standby units. Edwin added: “It also has a self-sufficient marine facility with the ability for freight optimization; the largest single order of five SPMs anywhere in the world; Crude SPM for unloading ships up to ULCCs; three product SPM for product exports up to Suez Max vessels and 2 X 48” subsea crude pipelines with interconnection.
“Dangote industries has developed a port and constructed quays with a loading bearing capacity of 25 tonnes/sq meters to bring Over Dimensional Cargoes close to the site directly to handle liquid cargoes.
The jetty is situated at a distance of 12.3 km from the refinery thereby effectively reducing travel time.
“Dangote Petroleum Refinery maintains high standards for all its business practices, valuing health, safety, environment, and rights for its employees.
“It complies with all applicable local and international laws and is a committed partner to communities, governments, and the environment.”