Dangote refinery to generate $27bn annual revenue
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 Nigerian NewsDirect.
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.
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).
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 percent 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 percent of its water.
Additionally, the refinery effectively utilises its by-products: the heat generated in the process is fully harnessed to produce 50MW of power, demonstrating an innovative approach to energy efficiency.
