• Wednesday, February 21, 2024
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BusinessDay

Buhari to inaugurate 650,000bpd Dangote Refinery May 22

President Muhammadu Buhari is expected to launch the 650,000 barrels per day (bpd) Dangote refinery on May 22, according to a statement by the company. The development could ease the supply of refined petroleum products in the country.

The integrated refinery and petrochemical complex in the Lekki Free Zone near Lagos, Nigeria, will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene, and will likely generate 4,000 direct and 145,000 indirect jobs.

It is expected to double Nigeria’s refining capacity and help meet the increasing demand for refined petroleum products while providing cost and foreign exchange savings. It is estimated to have an annual refining capacity of 10.4 million tonnes of petrol.

Read also: Nigeria to get additional 681,000 bpd oil production as FG discovers new fields

According to the World Bank, the refinery is expected to boost Nigeria’s external earnings by drastically reducing fuel imports, contributing to the regional supply of petroleum products.

The bulk of the crude for the refinery operations is expected to come from Nigeria, given that the Nigerian National Petroleum Company Limited (NNPC) holds a 20 percent stake in the company on behalf of the federation, but the declining crude output would present a challenge.

The NNPC says it would supply half of the crude required by the plant, and if this is sold at market price, it would be impractical to continue paying subsidies.