Nigeria: Dangote Refinery to Save Nigeria From Dirty Fuels

Gas flaring is on the rise again.
31 October 2018

Dangote Oil Refinery Company (DORC) has stated that the 650,000 barrels per day refinery has been designed to process a variety of light and medium grades of crude and produce extremely clean fuels that meet Euro V specification.

Sulphur in petroleum fuels results in vehicle exhaust emissions that have negative impact on health and environment.

Nigeria has continued to remain a home for fuels with very high sulphur contents (dirty fuels), and the presumed ban on such products is not having any effect.

Speaking on "Promoting Efficiency and Clean Fuels in African Refining and Petrochemicals Market," at the Oil Trading and Logistics (OTL) conference in Lagos yesterday, Dangote's Group Executive Director, Devakumar Edwin, said

Dangote Refinery is investing in most advanced units to produce Euro V fuel to help Nigeria meet the European standard of petrol.

Edwin, who was represented by Director Business Strategy and Optimisation, Dangote Refinery, Mr. Srinivas Rachakonda, said that the construction of the Refinery will provide thousands of direct and indirect jobs and add value to the Nigeria's economic development.

He noted that the Refinery will lead to significant skills transfer and technology acquisition opportunities in the country.

He added that Dangote Group has embarked on a landmark integrated refinery and petrochemical project, regarded as the largest industrial complex in the history of Africa, which is expected to take Nigeria to new heights through transformation of the economy.

According to him, the refinery will ensure that the security of local supply of petroleum products is guaranteed as well as the availability of petrochemical feedstock (Poly-propylene and Polyethylene), which will be enough for the Nigerian market as well as the neighboring countries. In addition to Polypropylene Polyethylene, the Refinery will also produce Carbon Black feedstock and Sulphur.

With a fast-growing population and poor infrastructure, he said the refinery will also reposition Nigeria as an attractive investment destination and a major industrial hub in Africa.

He disclosed that the company has also invested in the East West Offshore Gas Gathering System (EWOGGS) project, which is expected to unlock significant gas supply and help to reduce gas flaring in Nigeria.

According to him, the first phase is expected to deliver gas for the use of Dangote Industries, including the proposed fertiliser plant in the refinery complex, and other identified industrial and power plant users.

Also speaking during the session, a former Executive Secretary of the Petroleum Product Pricing Regulatory Agency (PPPRA), Mr. Reginald Stanly, said Dangote Refinery is going to be a game changer for the entire African downstream industry.

He condemned the continuous importation of dirty fuel into the country. "Emission is the highest killer today in Nigeria. I commend Dangote Refinery for its decision to produce Euro V specification of gasoline. Dumping of toxic fuel in the country is not acceptable, the earlier they stop it, the better for us," he added.

He urged the major oil marketers to retool their strategies to remain in business when Dangote refinery finally comes on stream.

In his welcome address, Chairman, OTL Africa Downstream, Mr. Emeka Akabogu, said recent market tendencies have shown appetite for some categories of investment in the downstream value chain.

Akabogu noted that there have been considerable investments in retail outlet development, marine logistics platforms and storage facilities across the country, while several refinery projects that aim to balance the discrepancy caused by inadequate refining capacity on the continent are currently underway.

He said other emerging developments, issues bordering on regulation of the industry and independence of the regulators themselves have also received the attention of stakeholders.

He added that policy development and implementation have not kept pace with the urgency of industry needs and the appetite of market operators.

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