• 6 minutes Will the trade war hurt US project builds? Not if the US does it right.
  • 12 minutes OIl Targets from Experts to $300, vs. imho $52
  • 19 minutes Venezuela, the largest oil reserve in the world, faces deep shortages of motor oil
  • 24 mins Does S Arabia Have 2 Mln Barrels in Spare Capacity?
  • 15 mins Ireland Exits Fossil Fuels
  • 2 hours Trade War of 1930s, Extended the Great Depression
  • 2 days Apple's $300 fund in China
  • 10 hours Oil prices going down
  • 3 days Top Adviser to Khamenei: Iran Will Leave Syria, Iraq Only if Baghdad, Damascus Want It
  • 1 day Britain should bet more on renewables and less on nuclear
  • 14 hours Tesla Shareholders Finally Fed Up? Could it be true?
  • 3 days Russia & China bypassing Oil Sanctions to North Korea, U.S. Peeved
  • 2 days Good And Bad News: Global investments in wind power surged during the first half of 2018. At The Same Time Solar is slipping
  • 3 days Consumer prices on rise
  • 3 days Michiganders, Rejoice: Musk Will Fix Flint
  • 3 days Trump was right-AT&T has increased the prices
Are Bionic Cells The Future Of Solar?

Are Bionic Cells The Future Of Solar?

Scientists from the University of…

5 Companies To Watch As Energy Stocks Surge

5 Companies To Watch As Energy Stocks Surge

The U.S. energy industry has…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for the U.S.-based Divergente LLC consulting firm with over a decade of experience writing for news outlets such as iNVEZZ and…

More Info

Startup Of Huge $10-Billion Nigeria Refinery Pushed Out To 2020

flaring

Africa’s richest man Aliko Dangote, who is financing the construction of one of the world’s largest oil refineries, believes that the 650,000-bpd facility could be near its full capacity by the middle of 2020, which would be some one and a half years later than the originally planned startup date.

Back in 2016, Dangote, a construction and concrete magnate worth around US$15 billion at that time, told CNNMoney that the refinery would aim to meet all of Nigeria’s daily demand for fuels of up to 550,000 bpd. The excess, he said, would be exported. At that time, some initial works for the refinery were already under way, with plans to bring it online by late 2018.

In mid-2016, Dangote wasn’t worried about low oil prices because refiners win in low oil price environments, as margins are high.

“People who own refineries are the best out there, making money,” Dangote told CNNMoney in June 2016. “The lower the crude oil price, the more profit that you make in terms of refining margin.”

It looks like that the startup date has been pushed out several times.

According to a 2017 PwC report on Nigeria’s refining industry, the Dangote refinery—a crucial development in the sector—was expected to come on stream by 2019. In all of PwC’s scenarios on Nigeria’s refining sector, the Dangote refinery was assumed to “open its gates mid-2019.”

“At optimal utilisation, the refinery is capable of meeting the country’s demand, however a major headwind to achieving a fully optimised run, is availability of crude feedstock,” PwC said.

Related: Do Trump’s Tweets Point To Another Oil Crisis?

“We’re flexible in terms of our feedstock,” Edwin Devakumar, group executive director at Dangote Industries Ltd, told Bloomberg in an interview published today. The refinery will be able to process all the African, American, and Middle Eastern crude grades, as it doesn’t want to be dependent on Nigerian crude, he added.

The Nigerian company has talked to Shell, Vitol, and Trafigura about the oil traders possibly supplying the refinery with crude and buying the refined products, but nothing specific has been decided yet, Devakumar told Bloomberg.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News