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Eleven refineries including Dangote Refinery across Africa may become functional from next year. This will provide an immediate market for African crude oil, as the fossil fuel segment worldwide is getting increasingly complex
Eleven refineries including Dangote Refinery across Africa may become functional from next year. This will provide an immediate market for African crude oil, as the fossil fuel segment worldwide is getting increasingly complex. The refineries will have a total capacity of refining 1.7 million barrels per day of crude oil from the global market, which can, to a great extent, stem the outgo of foreign exchange from the continent.
In a country like Nigeria, 90% of the crude mined is exported to other destinations for refining. In turn, the country imports its fossil fuel requirements leading to severe outgo of foreign exchange. Similar situations exist in oil-producing African countries like Angola, Libya, etc.
The higher demand for fossil fuel is triggered by the reports that China continues to open up after COVID-19. This is coming amidst the speculation that Russia may switch to a production cut due to the likely winter storm across North America.
The 1.7 million BPD expected to be consumed by refineries would be enough to meet the continent’s need to meet the oil requirements, helping Africa to reach closer to energy security. Besides, this can lead to countries like Nigeria meeting foreign exchange crises, stability of the continent’s economy, and value addition.
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https://trendsnafrica.com/shell-to-pay-15-million-euros-to-nigerian-farmers-for-causing-oil-spill/
Some of the refineries expected to come on stream and their capabilities in the continent are Dangote Refinery (650,000 bpd), the NNPC combined refinery capacity is 445,000 bpd, MIDOR expansion in Egypt (160, 000 bpd), Assiut Hydrocracker (90,000 bpd) and Hassi Messaoud Refinery in Algeria (100,000 bpd). Others are South Africa’s Astron Restart (100, 000 bpd), Cabinda Refinery of Angola, (60,000 bpd), and Ghana’s Sentuo refinery (120, 000). Nigeria’s Port Harcourt Refinery Company (PHRC), is scheduled to start refining crude oil this month.
