• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 7 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 11 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 7 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 hours "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 1 day Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 7 hours The Federal Reserve and Money...Aspects which are not widely known
  • 1 hour "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 2 hours Uniper is over - Germany (Government) buys the Company
  • 2 hours "How BlackRock Conquered the World" by James Corbett (all 3 parts)
  • 7 hours "Oil prices likely not responsible for inflation and other energy insights by hedge fund manager Josh Young" - Kitco News interview by David Lin
  • 13 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 6 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 13 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
European Gas Consumption Is 24% Below The Five-Year Average

European Gas Consumption Is 24% Below The Five-Year Average

Demand destruction is clearly underway…

The Environmental Consequence Of Burning Rubber

The Environmental Consequence Of Burning Rubber

New modeling put together by…

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

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

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News