9 Investment Tips about DANGOTE REFINERY IN IBEJU-LEKKI
It is no longer news that Dangote Refinery is coming life to Ibeju-Lekki Area of Lagos state Nigeria.
The Refinery is expected to be the world’s biggest single-train facility, phase one of this project is going to be completed by the end of 2018.
There have been so many praises going to the Dangote group for venturing into this project in order to save Nigeria from lots of cost.
The project is estimated to cost about $9bn, the refinery will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene. The prosject is expected to generate 9,500 direct and 25,000 indirect jobs.
Nigeria is estimated to hold approximately 37 billion barrels of proven oil reserves, which is the second biggest oil reserve in Africa. Nigeria, however, imports majority of its refined products due to lack of domestic refining capacity.
The Dangote Refinery will double Nigeria’s refining capacity and help in meeting the increasing demand for fuels, while providing cost savings and creating Jobs for Nigerians.
Below are the 9 Investment Tips about Dangote Refinery project and why it is a key factor to the development coming to Ibeju-Lekki Area of Lagos and Nigeria at large. Enjoy!!!
1. Site And Location Details Of Dangote Refinery:
The refinery site covers an area of 2,635 hectares of land on the Lekki Free Zone near the Lekki Lagoon. The location will enable Dangote Refinery to easily ship out refined petroleum products to the international markets.
2. Infrastructure And Site Facilities For Dangote Refinery:
The refinery will feature infrastructure facilities such as a pipeline system, access roads, tank storage facilities, and crude and product-handling facilities. A marine terminal, including a breakwater, jetty and harbor, is also part of the refinery.
In addition, an administrative building, guardhouses, fire station and pump stations will be part of the facility.
The Dangote Refinery complex will also include a fertilizer plant, which will utilize the by-products from the refinery as raw materials.
3. Products To Be Produced Dangote Refinery:
The Dangote refinery will have an annual refining capacity of 10.4 million tonnes (Mt) of gasoline, in addition to 4.6Mt of diesel and 4Mt of jet fuel.
It will also produce 0.69Mt of polypropylene, 0.24Mt of propane, 32,000t of sulphur and 0.5Mt of carbon black feed.
4.Processing Units At Dangote Refinery:
The processing facilities at the refinery include a crude distillation unit (CDU) and associated facilities, a mild hydrocracking (MHC) unit, residual fluid catalytic cracking (RFCC), naphtha hydrotreater and RFCC gasoline hydrodesulfurisation (HDS) unit, as well as alkylation units.
“With the completion of this project Nigeria is estimated to hold approximately 37 billion barrels of proven oil reserves, which is the second biggest oil reserve in Africa.”
Sulphur recovery and hydrogen generation facilities and a polypropylene unit are also part of the refinery. The hydrogen generation complex will consist of two steam methane reformer (SMR) units.
It will generate 200,000Nm³/h of hydrogen and steam, which will be used to produce sulphur-free fuels.
Additional processing units include a set of units supplied by DuPont to produce clean fuels. These units include the STRATCO® alkylation unit and the MECS® sulphuric acid regeneration (SAR) unit.
The MECS® DynaWave® sulphur recovery unit and BELCO® EDV® fluid catalytic cracking unit are also included.
5. Funding For The Dangote Refinery Project:
The Dangote refinery is being constructed through $3bn equity and $6bn loan capital. A consortium of local and international banks led by Standard Chartered Bank is providing a $3.3bn loan facility.
The United States Trade and Development Agency is offering a N251.3bn ($0.997m) training grant to develop human resources for operating the refinery.
6. Contractors Involved In Dangote Refinery Project:
Engineers India was awarded the engineering, construction and procurement contract for the refinery.
UOP was contracted to supply catalyst regeneration and dryer regeneration control systems, column trays, heat exchanger tubes, a modular CCR unit, and catalyst coolers among other equipment.
C&I Leasing is responsible for providing transportation and installation services for mooring systems and subsea pipelines of the refinery.
Hang Xiao Steel Structure Company was awarded a $112m contract to supply steel structure for the refinery.
Jan De Nul Group was responsible for carrying out land reclamation works. MAN Diesel & Turbo is supplying two compressor trains, while Air Liquide Engineering & Construction is supplying the SMR units.
Other suppliers involved in the project are Fabtech (18 columns), Schneider Electric (process automation systems), SOFEC (Catenary Anchor Leg Mooring bouys) and WABAG (raw water treatment plant).
7. Project Completion For Dangote Refinery:
Dagote 650,000 bpd Oil Refinery is projected to start selling petrol, diesel and aviation fuel by early 2020, but the fertiliser plant, will start producing urea by the end of this year 2019.
According to Edwin Devakumar, the group executive director to Bloomberg.
8. African Nations Are Waiting For The Dangote Refinery:
According to a report from the Pulse Business Insider, Petroleum importing African nations and bulk oil distributors based in Ghana have expressed eagerness to patronise Dangote Oil Refinery when production starts.
Hints of the eager expectation and hopes on the Dangote Refinery were revealed at the 2018 Ghanaian International Petroleum Conference (Ghipcon 2018), which held in Accra, Ghana on Monday, June 11, 2018, through a statement from Dangote Group.
According to the statement, participants at the conference as well as oil distributors and marketers from various countries were eager to know how they could key in for supplies from the 650,000-barrel-per-day Dangote Refinery.
Ahead of the completion of the Dangote Refinery, the Ghanaian government was quoted to have expressed the view that dealing with Dangote refinery for petroleum import would be a better business for African nations than depending on the international market for the supply of refined products, adding that
“we will rather purchase from the Dangote Refinery due to the proximity of the refinery to Ghana and other neighbours.”
This means that Lekki-Epe Axis will be witness alot exposure to both Nigerians and foreigners in the next few years to come only. make sure you key into this opportunity today.
9. Dangote Refinery As A Key Development In Ibeju-Lekki:
Dangote said the combined projects under construction at the Lekki Free Trade Zone was the largest anywhere in the world, and that it was important for the right message about the axis to be communicated to the people to appreciate its impact on the economy.
Dangote said: “What is happening here is the largest project anywhere in the world today and this visit is just to show the Governor the industrial jetty that we have built including the water breaker which is 900meters which is almost like about a mile”.
This is to show what we have done in terms of bringing in our cargo to build the refinery. We have done quite a lot in terms of water protection and also it is environmentally friendly and this is what we have shown the Governor.
This is just showing that this place is going to really open for business and we are looking for a lot of infrastructure to be built and this place will be the next destination for any investment in Nigeria.
Despite all this massive investments happening in this area, it still amazes me that some people has not still key into by owning a piece of land in here at the Lekki Free Trade Zone Area in Ibeju-Lekki.
You have to understand that it might be difficult for you to have a share of Dangote’s fortune and the Excellence Economy of Lagos but you can easily enjoy all of that when you own a piece of land in this area.
Believe me in the next 5 to 10 years from now you will be happy you did so as your children and children yet unborn.
Don’t wait till everything becomes a reality key into it now…Show Us Love and Give Us a Follow on Socials