Aliko Dangote, founder of the Dangote Group, has built a $20-billion oil refinery with a refining capacity of 650,000 barrels per day by 2024.
Dangote Oil Refinery is an integrated refinery project under construction in the Lekki Free Zone near Lagos, Nigeria. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility.
The refinery is covers a land area of approximately 2,635 hectares, which about the six times the size of Victoria Island
The $20 billion refinery is set to commence production this December 2023, marking a significant shift in the energy industry in Africa.
It will receive its first 6 million barrel cargo from Nigerian National Petroleum Corporation Limited in December.
Dangote plans to reach a full refining capacity of 650,000 bpd by the end of 2024, despite starting operations at 350,000 bpd.
The Pipeline Infrastructure at the Dangote Petroleum Refinery is the largest anywhere in the world, with 1,100 kilometers to handle 3 Billion Standard Cubic Foot of gas per day.
“The Refinery alone has a 435MW Power Plant that is able to meet the total power requirement of Ibadan DisCo.,” says the company on its website.
The Dangote Oil Refinery’s inauguration in May raised concerns about its potential impact on Nigeria’s refined petroleum needs due to operational delays.
Dangote faced challenges during the $20.5 billion petrochemical complex construction, running $8 billion over budget and significantly delayed, expressing fears the venture might lead to his business empire’s fall.
Despite facing challenges, he expressed gratitude, acknowledging that it’s either we sink or we sail through, and thanking the Almighty for reaching our destination.
Dangote refinery in Nigeria reduces dependency on foreign imports, generating $25 billion in annual revenue when operating at full capacity, despite falling short of OPEC quota.
The International Energy Agency (IEA) has praised Dangote and his refinery as a transformative force poised to drive oil demand growth in the coming decade.
The IEA sees refineries as crucial for Africa’s energy future, promoting self-sufficiency and reducing import reliance, highlighting potential benefits for nations heavily reliant on imported refined energy products.
The Refinery will meet 100% of the Nigerian requirement of all refined products and also have a surplus of each of these products for export.
Dangote Petroleum Refinery is a multi-billion dollar project that will create a market for $21 Billion per annum of Nigerian Crude. It is designed to process Nigerian crude with the ability to also process other crudes.