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How COVID-19 has impacted the progress of Dangote Refinery
Despite the Covid-19 pandemic, work is still on-going at the 650 000 barrels per day Dangote Refinery, which is expected to be commissioned in January next year. The company’s Group Executive Director Devakumar Edwin joins CNBC Africa to share some insight on the progress.
Mon, 06 Jul 2020 11:53:03 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Despite facing setbacks, including a temporary production value loss of about 50% over three months due to restrictions on workforce ramp-up, the team at Dangote Refinery remains optimistic about meeting their targets.
- The absence of limestone in West and Central Africa presents an opportunity for Dangote Refinery to bridge this gap by exporting clinker to neighboring countries, thereby creating value addition within the region.
- Dangote Refinery's production of fertilizer is poised to play a pivotal role in meeting the agricultural needs of the African continent, leveraging Nigeria's natural gas resources to support food production on a broader continental scale.
Despite the challenges posed by the COVID-19 pandemic, construction work at the Dangote Refinery, set to be the largest in Africa with a capacity of 650,000 barrels per day, continues apace. The company's Group Executive Director, Devakumar Edwin, recently shared insights on the progress of the refinery, shedding light on the impact of the global health crisis on their operations. The interview touched on the resilience shown by the project, the timeline for completion, and the strategic importance of their recent exports. Despite facing setbacks, including a temporary production value loss of about 50% over three months due to restrictions on workforce ramp-up, the team at Dangote Refinery remains optimistic about meeting their targets. The refinery had initially set its sights on mechanical completion by the end of this year, with commissioning slated for January 2022. However, due to the disruptions caused by the pandemic, there might be a delay of up to two months. Despite this setback, Edwin expressed confidence in their ability to catch up and maintain their original timeline. The company's recent export of clinker was highlighted as a crucial step towards leveraging Nigeria's abundance of raw materials and providing value addition within the region. The absence of limestone in West and Central Africa presents an opportunity for Dangote Refinery to bridge this gap by exporting clinker to neighboring countries. Esteemed as a significant player in the region's industrial landscape, Dangote Refinery's foray into the export market is expected to not only benefit Nigeria but also create employment opportunities in countries where grinding plants will be established. The progress on another key project, the Urea Fertilizer Plant, was also discussed in the interview. Edwin shared that the commissioning process has commenced, with the plant expected to be operational soon. With strategic plans in place to expedite the commissioning process, including pre-commissioning activities with imported Urea, the team is optimistic about bringing the plant online efficiently. The implications of these developments on the African Continental Free Trade Agreement were also elucidated. Dangote Refinery's production of fertilizer is poised to play a pivotal role in meeting the agricultural needs of the African continent. With natural gas resources in Nigeria and a growing demand for fertilizers across the region, the refinery is well-positioned to support food production not just locally but also on a broader continental scale. Lastly, Edwin touched upon the successful debut of Dangote Refinery's 100 billion series one bond, which garnered positive reception from investors. Being a trusted blue-chip company with a strong track record, Dangote Refinery's bond issuance was well-received in the market, reflecting investor confidence in the company's future prospects. Despite the challenges brought about by the pandemic, the Dangote Refinery project stands as a testament to resilience and adaptability in the face of adversity. With strategic plans in place to navigate the current setbacks, the refinery remains on track to become a key player in the African industrial landscape.
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