NESG forecast $21bn crude oil market creation by Dangote Refinery

Nigerian Economic Summit Group (NESG), one of Africa’s leading think-tanks, has projected that Dangote Refinery and Petrochemical Company, set for inauguration on May 22, can create a $21 billion market for Nigeria’s crude oil.

In a brief by the organisation, it further noted that the facility could meet all the fuel needs of Nigeria, including petrol, diesel, jet fuel, and polypropylene, as well as provide loading facilities that could accommodate about 2,900 tankers and spur the building of housing units capable of accommodating 33,000 people.

By constructing the 650,000 barrels per day crude oil facility, which sits atop 2,635 hectares of land and has 177 tank farms, NESG stated, Dangote refinery and petrochemical company is set to reshape Nigeria’s economy and position the country as a global energy player.

NESG said in the brief, “The sheer magnitude of the Dangote refinery and petrochemical company is awe-inspiring. Spanning an expansive 2,635 hectares, equivalent to seven times the size of Victoria Island, this world-class facility is a testament to Nigeria’s ambition and determination to take charge of its energy future.

“With a capacity to process 650,000 barrels of crude oil per day, the refinery can cater to the entire spectrum of Nigeria’s refined product requirements. Additionally, the presence of a 900 KTPA polypropylene plant showcases its versatility in the production of petrochemical products.”

Stressing that Nigeria had long relied on imported refined petroleum products, resulting in economic vulnerability and dependence, NESG said the Dangote Refinery and Petrochemical Company aimed to change this paradigm.

The organisation stated, “With its extensive capacity, the refinery has the capability to meet 100 per cent of Nigeria’s domestic demand for all refined products. This includes 57 million litres per day of gasoline, 27 million litres per day of diesel, 11 million litres per day of kerosene, and nine million litres per day of aviation jet fuel.

“Furthermore, the surplus production of these products allows for potential exports, positioning Nigeria as a significant player in the global energy market.

“By producing refined products domestically, the Dangote Refinery and Petrochemical Company strengthens Nigeria’s energy independence and security.”

It added, “The integrated power plant within the refinery has a capacity of 435 MW, which exceeds the total power requirement of Ibadan Distribution Company (Disco).”

According to the group, this not only ensures a stable supply of petroleum products but also contributes to the economic development of multiple states in the region.

The reduced reliance on imports, the group argued, shields Nigeria from the effect of volatile global oil prices, further fortifying the country’s energy security.

NESG said the impact of the refinery and petrochemical company extended beyond its refining capabilities.

It stated, “The project encompasses the development of unparalleled infrastructure to support its operations. This includes a self-sufficient marine facility, featuring the world’s largest order of five Single Point Mooring systems (SPMs).

“Additionally, Dangote has established the world’s largest granite quarry, a ready-mix concrete capacity, and procured an extensive fleet of trucks and cranes to meet construction requirements. These endeavours not only enhance local capacity but also contribute to Nigeria’s broader infrastructure development goals.”

The group said in addition to the thousands of direct jobs created, the establishment of the Dangote Refinery and Petrochemical Company was expected to generate approximately 100,000 indirect employment opportunities, further contributing to Nigeria’s economic growth and job market.

It said, “The imminent launch of the Dangote Refinery and Petrochemical Company is poised to mark a new era in Nigeria’s energy sector. With its unparalleled scale, advanced technology, and commitment to self-sufficiency, this monumental project will elevate Nigeria’s economy and energy security to new heights.

“By meeting domestic demand and potentially exporting refined products, Nigeria will establish itself as a key player in the global energy market. The Dangote Refinery and Petrochemical Company stands as a testament to Nigeria’s ambition, innovation, and determination to shape its own energy future.”