Infographic: Nigeria’s Dangote Refinery project

The facility is located near Lagos in the Lekki Free Zone and occupies 26.4 square kilometres and has seen a total investment of around USD 19 billion. It is Africa’s biggest oil refinery and the world’s largest single-train facility. This project is long overdue as Nigeria’s refining capacity has been undermined by the lack of investment in infrastructure and maintenance of the existing State facilities. This project will allow the country to refine its own crude petroleum and increase its export revenue as well as provide more stability tothe national petroleum market.

Project parameters

Input capacity: 650,000 bpd

Crude blends: Refinery may receive crude oil from almost anywhere, with a preference for Bonny Light. Cannot process heavy and waxy crudes such as Venezuelan, Ugandan or tar crude.

Output: Petrol, diesel, kerosene and Jet A-1

Output capacity: 10.4 million tonnes of petrol per year, 4.6 million tonnes of diesel per year and 4 million tonnes of Jet A-1 per year

Associated infrastructure
Vessels: capability of bringing in ultra-large vessels, they have a 45-metre draught. Five floating buoys which are then connected to the shoreline by offshore pipelines

Storage: 2.4 billion litres. 20 crude storage tanks, each with a capacity of 120 million litres

Pipeline: 1,100 km which will transport 3 bcf (84.96 mcm) of gas per day

Power: 570 MW. Daily consumption of energy is 300 MW per day. Refinery has a 400 MW power plant that is able to meet the total power requirement of Ibadan DISCo. 50 MW recovered from the residue fluid catalytic cracking unit. 120 MW coming from the fertiliser plant.

Financials
Cost: USD 19 billion

Investments: A consortium of local and international banks led by the Standard Chartered Bank provided a USD 3.3 billion loan facility. NNPC has 20% equity at USD 3.8 billion, providing USD 1 billion cash, while the remaining USD 2.8 billion will be in crude supply.

Debts: USD 8.4 billion debt represents 75% of Dangote’s net worth at USD 11.1 billion

Market impact
Expected impact: The refinery will meet 100% of the Nigerian requirement of all refined products and have a surplus of each of these products for export. Will create a market for USD 11 billion per year of Nigerian crude. Domestic demand for petroleum products is less than 400,000 litres per day, 60% of production at the refinery would be available for local consumption while the remaining would be for export.

Job creation: 4,000 direct and 145,000 indirect jobs

Source: Compiled from various sources