Africa’s largest oil refinery will not be finished until the end of 2020 due to problems importing steel and other equipment, executives at Dangote, which is building the facility in Lagos said.
The company expects fuel production within two months of completion of the refinery, which could transform Africa’s biggest crude producer from a fuel importer into a net exporter, upending global trade patterns.
Billionaire Aliko Dangote, who built his fortune on cement, first announced a smaller refinery in 2013, to be finished in 2016. Dangote then moved the site to Lekki, in Lagos, upgraded the size and said production would start in early 2020.
Price caps force NNPC to import nearly all its gasoline at a significant cost and periodic fuel shortages are common.
Edwin also said during an interview at his office in Lagos that Dangote is setting up its own trading desk, with a senior team of three people and a staff of roughly 30 who will monitor international commodity prices.
We are setting up a complete trading desk here with us. In the next three months the full desk will be set up,” he said.
The tanks will be connected to five “single point mooring buoys” (SPMs), which will allow the refinery complex to pump crude straight into tanks from large ships at sea and pump products back out onto boats of any size.
The SPMs will be the primary method of supplying oil products from the refinery, Surace said, adding that the team was considering using the tanks as training or as a depot before the refinery’s production starts.
“We might do that. We will be ready to do that,” he said, though he added that no decision had been taken yet.
The team is in talks with NNPC, two other international oil companies, and two large oil traders, all of whom are interested in supplying crude and buying products, Edwin said.
Edwin said the crude unit for the refinery, which set sail from China last month, would arrive by the end of October.
The trains at a fertilizer plant on the same site will start up by the end of this year, the executives said.Do you want to be the first to get these news,updates and vital info?