The planned $12 billion Dangote refinery has enhanced the ranking of Nigeria as one of the major contributors to global refining between 2019 and 2023.
The nation is tipped to be one of the major contributors following the expected coming on stream of the 650,000 barrels per day refinery in 2020.
GlobalData, a data and analytics organisation that made the forecast in its recent report is said to have disclosed that China and Nigeria would soon emerge as the major contributors to the global growth of refining industry capacity in planned and announced projects between 2019 and 2023.
In its latest report, the organisation is said to have stated: "Global Planned Refining Industry Outlook to 2023 - Capacity and Capital Expenditure Forecasts with Details of All Planned Refineries' revealed that the total global planned and announced refining capacity in 2023 will be 17,882 bopd."
It stated: "Between 2019 and 2023, 158 new refineries worldwide are scheduled to start operations. Total new-build capital expenditure (capex) of around US$520bn is expected to be spent globally on planned and announced refineries."
The report disclosed that China is the global leader in planned refining during the forecast period, with 3,121 bopd from 10 planned and announced refineries, adding that the nation has planned and announced a new capex of US$53.2bn to be spent on the upcoming refineries over the next four years.
It also disclosed that Nigeria remains the second largest country in terms of capacity additions, stressing that by 2023, Nigeria would add about 2,225 bopd of refining capacity.
The report which stated that Iraq would emerge as the third largest nation with 1,190 bopd refining capacity additions from planned refineries added that between 2019 and 2023, it plans to invest about US$41 billion in new plants.
Meanwhile, Dangote Oil Refining Company, DORC, Limited has begun installing equipment having received the regenerator for the Residual Fluid Catalytic, FCC cracker, one of the major components of its refinery.
The company had set 2020 deadline for operations despite suggestions that the oil refinery being built in Lekki, Lagos Nigeria would not meet up with the deadline.
"The refinery equipment are coming in semi-finished shape and we will finish them up here at the site. The remaining are being manufactured in various countries, including China, India, America, South Korea, Singapore and Malaysia," Rama Putta, Head of Quality Assurance/Quality Compliance and Construction, at the company said.
According the company, the refinery is being designed to accommodate multiple grades of domestic and foreign crude and process these into high-quality gasoline, diesel, kerosene, and aviation fuels that meet Euro V emissions specifications, plus polypropylene.
Dangote expects the refinery to stimulate economic development in Nigeria, according to Devakumar Edwin, Executive Director, Dangote Group, who said the refinery was designed to process a variety of light and medium grades of crude and produce extremely clean fuels that meet Euro V specification.
Recently, the CBN Governor, Godwin Emefiele who visited the plant had reiterated his support for the Dangote refinery, a Nigerian wholly owned private enterprise.
The CBN governor had signified intention to support Dangote in his refinery project since the final investment decision; FID, was taken by the Dangote Group.
He had said that CBN will provide funding in terms of foreign exchange and naira to import equipment.