- Dangote refinery’s 4.742 billion litres storage capacity, can serve as a strategic reserve for the country.
Nigeria is unable to maintain Strategic Petroleum Reserves (SPR), stockpiles of crude oil maintained by countries for release in the event of a supply disruption, due to the lack of crude storage facility. With lack of storage capacity, Nigeria’s oil reserves, less than 40 billion barrels, are mostly sold on the spot. This weakens Nigeria’s capacity to get good deals compared with countries with strategic inventories. Dangote refinery’s 4.742 billion litres storage capacity, can serve as a strategic reserve for the country. The plan of the storage capacity showed that 2.4 billion litres would be assigned to crude while the remaining would be used as storage for refined fuels. The construction of the refinery is expected to start functioning in the fourth quarter of this year producing 650,000 barrels per day of oil.
While the Refinery would help to ensure energy security for the country, the Dangote Fertiliser plant would promote food security in the country. Dangote Fertilizer Plant, was commissioned by President Muhammadu Buhari last month. The refinery is expected to produce the highest quality Euro V Grade petroleum products, and the fertilizer plant will provide granulated urea, which is of the highest quality. The $2.5 billion Dangote Fertiliser Plant will produce three million metric tonnes of urea every year; The plant has started exporting to the US, India, Brazil, Mexico and Argentina.
In short both the facilities have been hailed as a game changer for Nigeria in terms of ensuring food security, energy security, employment generation, contribution to the GDP and conservation of foreign exchange.
Read Also;
https://trendsnafrica.com/dangote-fertilizer-plant-inaugurated/
https://trendsnafrica.com/dangote-oil-refinery-in-lagos-to-go-on-stream-is-2022/
https://trendsnafrica.com/dangote-cement-tanzania-launches-corporate-social-responsibility-projects/
