Dangote Group builds world's largest oil refinery

The Dangote Group is on the brink of revolutionizing Nigeria's energy sector with its ambitious $12 billion petrochemical project, touted to be the largest single-trimmed petroleum refinery in the world. Edwin Devacoma, the Group Executive Director for Strategy, Capital Project and Portfolio Development at Dangote Industries, recently discussed the project in an exclusive interview. The project, with a production capacity of around 650,000 barrels per day, is set to address Nigeria's energy needs comprehensively. Devacoma highlighted the two major components of the project: a fertilizer plant and the largest petroleum refinery globally. The fertilizer plant, which is expected to produce ammonia and urea, aims to become the world's largest complex with a capacity of 3 million tons per annum. Devacoma confirmed that the mechanical erection is in progress, with an anticipated completion timeline by the end of the year. As for the petroleum refinery, the facility will not only cater to Nigeria's domestic fuel demands but also have surplus production for export, enabling the country to achieve self-sufficiency in fuel. The project's significance extends to the integration of a petrochemical complex to produce polypropylene and polyethylene, contributing an additional 1.2 million tons per annum. Devacoma emphasized the scale of the endeavor, citing the massive infrastructure requirements, including a million tons of steel, 2,000 kilometers of pipeline, 7,000 kilometers of electrical cables, and half a million cubic meters of concrete. Moreover, the project encompasses a third component involving the installation of a 1,100-kilometer subsea gas pipeline to handle 3 billion cubic feet of gas daily. This initiative aims to address Nigeria's gas utilization challenges by providing necessary infrastructure to prevent gas flaring. The Dangote Group's funding strategy for the project involves a blend of project financing, equity capital infusion, and support from export trade agencies. By leveraging global partnerships, the group has secured substantial financial backing from export credit agencies worldwide. Upon completion, the project is expected to yield significant foreign exchange savings for the company and the nation. The refinery alone is estimated to generate export revenues of $5.5 billion while saving $7.5 billion in product imports, resulting in a net forex saving of $13 billion. Importantly, the petrochemical complex and fertilizer plant will further contribute to Nigeria's forex earnings and alleviate the pressure on the national currency. Devakumar expressed gratitude for the government's support in establishing a conducive business environment for the project. He mentioned the pioneer status tax facility as a beneficial initiative that promotes investments across sectors. Despite the group's success in expanding its operations to other African countries, Devakumar asserted the long-term focus on enhancing capacities within Nigeria. The group plans to double the refinery and fertilizer plant capacities in the future, signaling a commitment to bolstering Nigeria's energy independence. He emphasized the abundance of local resources such as crude oil and gas, positioning Nigeria as a strategic hub for the group's expansion plans. In conclusion, the Dangote Group's monumental petrochemical project represents a significant milestone in Nigeria's quest for energy self-sufficiency. With a meticulous funding strategy, robust government support, and a clear expansion roadmap, the project is poised to reshape the country's energy landscape and propel its economic growth to new heights.