• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 1 hour New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 5 hours Permafrost Melting Will Cost Us $70 Trillion
  • 53 mins Nothing Better than Li-Ion on the Horizon
  • 5 hours Russia To Start Deliveries Of S-400 To Turkey In July
  • 4 hours Occidental Offers To Buy Anadarko In $57 Billion Deal, Topping Chevron
  • 2 hours UNCONFIRMED : US airstrikes target 32 oil tankers near Syria’s Deir al-Zor
  • 5 hours Facebook Analysts Expect Earnings Will Reinforce Rebound
  • 21 hours Countries with the most oil and where they're selling it
  • 51 mins How many drilling sites are left in the Permian?
  • 9 hours ..
  • 22 hours Section 232 Uranium
  • 24 hours Deep Analysis: How China Is Replacing America As Asia’s Military Titan
  • 14 hours Iran Sabre Rattles Over the Straights of Hormuz
Has Trump Given Up On Keeping Oil Prices Low?

Has Trump Given Up On Keeping Oil Prices Low?

While Trump’s decision not to…

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