The Dangote refinery, with a capacity of 650,000 barrels per day (bpd), is projected to generate an annual revenue of $27 billion at full capacity, according to exclusive information reaching Nairametrics.
This new refinery is expected to yield approximately $27 billion in annual revenue from the sale of products such as petrol and chemicals. Initially, it will refine 350,000 barrels per day, with plans to eventually increase this capacity to 650,000 barrels per day.
The initial phase will focus on producing diesel, aviation fuel, and gas, with the production of petrol slated for a later stage.
Where the funds will come from
The Dangote refinery is set to produce a variety of fuels, including petrol, aviation fuel, kerosene, and diesel. Additionally, it will manufacture products such as urea and polypropylene for both domestic and international markets.
- Notably, the refinery will produce special products like naphtha and polypropylene, which are anticipated to spur growth in other industries, including cosmetics, plastics, and textiles.
- Designed to process Nigerian crude oil, the refinery is also equipped to handle crude from various other sources, including several African countries, the Middle East (e.g., Arab Light), and the United States (Light Tight Oil), among others.
- According to the company’s data, the production of motor gasoline (petrol) is expected to increase significantly. From virtually zero at present, it is projected to reach approximately 249,000 barrels per day (b/d) by 2026 and is anticipated to exceed 300,000 b/d by 2033.
- Furthermore, the report indicates that petrol imports are projected to decrease by more than half, dropping to 154,000 b/d by 2026.
It is noteworthy that, as of Thursday evening, the refinery has received its first batch of crude oil, following a supply agreement with the Nigerian National Petroleum Company Limited (NNPCL).
Billionaire approval
As the Dangote refinery commences active production of petroleum products and petrochemicals, billionaire industrialist Femi Otedola remarked on December 10 that the refinery is expected to generate $20 billion in revenue, significantly contributing to Nigeria’s economic transformation.
- Otedola further highlighted that the Dangote refinery incorporates advanced carbon capture technologies and storage processes.
- These are designed to capture over 90% of the carbon emissions, thereby playing a crucial role in reducing well-to-tank carbon emissions from crude oil maritime transportation.
- This initiative aligns with Nigeria’s goal of achieving net-zero emissions by 2060. He also emphasized the refinery’s environmental responsibility by noting that it recycles 100% of its water.
- Additionally, the refinery effectively utilizes its by-products: the heat generated in the process is fully harnessed to produce 50MW of power, demonstrating an innovative approach to energy efficiency.
What you should know
The Dangote Refinery is designed with advanced infrastructure to manage crude oil and petroleum products efficiently. It features two Single Point Moorings (SPMs) situated 25 kilometres offshore for receiving crude oil. Additionally, the refinery is equipped with three separate SPMs dedicated to the discharge of petroleum products.
- The refinery’s logistical capabilities are robust, with a capacity to load 2,900 trucks per day at its truck-loading gantries. This feature underscores its potential for high-volume distribution and supply chain efficiency.
- The Dangote Refinery also boasts a self-sufficient marine facility, capable of accommodating the largest vessels available globally. This aspect of the refinery enhances its global connectivity and operational scope.
- Importantly, all products produced by the refinery are set to meet Euro V specifications, ensuring compliance with high environmental and quality standards.
This commitment to producing cleaner and higher-quality fuels aligns with global environmental goals and market demands.