Dangote Group: Ghana remains a priority market
The biggest refinery in Africa, Dangote Refinery says it is working to fully complete the facility by 2023
Management of the Dangote Refinery says Ghana remains a priority market in the West African sub-region.
The refinery is set to begin full production by 2023.
Speaking at a virtual event on Thursday (3 June) on the “update of the Dangote Refinery and opportunities for Ghana,” Aliyu Suleiman, the group chief corporate strategy officer, Dangote Group said the company is working out flexible purchasing requirement for firms from Ghana.
Suleiman said, “I think the Ghana market is critical for us… as a group, our philosophy is to lead the industrialisation of Africa and also to provide Africans with their basic needs and there is nothing as basic as fuel because it underpins a lot in our economies.”
He added, “Ghana is important, it is close. It is a large market as well. Pricing as I mentioned, there are two models; one model is we just say this is our FOB price anybody can come and take it and sell, the other is we go into bilateral negotiations. And for the bilateral negotiations, we will do that at the right time and I’m sure there would be savings for anybody buying from here and we’ll agree on a price that enables both sides to capture a first share of the value that is being created.”
Suleiman said, “With the AfCFTA, I think some of the constraints that might have been in place will gradually be removed…”
Game-changer
Alpha Welbeck of the National Petroleum Authority (NPA) said “to begin with, a capacity of 650,000kilo barrels per stream day capacity is in no doubt a game-changer in the African sub-region. It’s a major boost to the region’s refinery capacity…”
She said “the operationalisation of the refinery will engender energy security for economic growth. By industry standards, the Dangote Refinery is a complex one with capabilities to deliver both transportation fuel and petrochemical field stock…
Welbeck added, “…the coming on stream of the Dangote Refinery will help accelerate the harmonization of specifications of the West Africa sub-region…”
She said, “We anticipate that a reduction in the cost of fuel supplies due to the proximity advantage for fuel in the sub-region since fuel in the sub-region are usual from North Europe…”
The virtual event was organised by the Chamber of Bulk Oil Distribution (CBOD).
About Dangote Refinery
The Dangote Refinery has been described as the biggest in Africa has a capacity to refine about 650,000 barrels of crude a day.
The refinery has a storage capacity capable of holding 20 days of the refinery’s crude requirements and 11 days of Nigeria’s gasoline consumption
Dangote refinery is a 650,000 barrels per day (bpd) integrated refinery and petrochemical project under construction in the Lekki Free Zone near Lagos, Nigeria.
It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility, upon completion in 2020.
The company owned by the Nigeria-based Dangote Group is developing the project with an estimated investment of US$12 billion.
The Dangote refinery will process a variety of light and medium grades of crude to produce Euro-V quality clean fuels including gasoline and diesel as well as jet fuel and polypropylene.
The integrated refinery and petrochemical project is expected to generate 9,500 direct and 25,000 indirect jobs.
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