China’s leading energy and chemical company, Sinopec, announced that a completed atmospheric tower made by the company will soon reach the shores of Lagos. The facility, which is described as the world’s largest, is set to be installed at the Dangote Refinery, owned by Africa’s richest man, Aliko Dangote. The vessel carrying the tower left the city of Ningbo and is set to arrive in Nigeria in a few weeks’ time. The primary purpose of the distillation tower is to separate crude oil into its components for further processing by other processing units.
Dangote’s refinery, first private and largest oil refinery in Africa, will incur a cost of US$12 billion. Dangote is sourcing the funds for setting up the refinery from multiple sources, including external sources. He also claimed that the refinery will start functioning by the end of 2019, which seems to be now an unrealistic target going by the progress of construction of the refinery. With the critical machinery-atmospheric tower- from China is complete and is on its way to Nigeria, many industry watchers feel that the refinery may be completed soon. The time over run may be utmost a few months , they say.
The refinery is located at the Lekki Free Zone (LFZ) in Lagos, the commercial capital of the country. The project will be complemented by petrochemical, gas & fertilizer projects, which will also be located in the same area. There is a pipeline being laid to bring gas from Bonny down to Olokonla and down to Lekki. The complex will also have a fertilizer project, using petrochemicals as the feed stock
The refinery will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene. It is expected to generate 9,500 direct and 25,000 indirect jobs.
Nigeria’s oil reserves are estimated 37 billion barrels. The paradox is that the country imports close to 90% of its refined products due to lack of domestic refining capacity. Dangote’s refinery will double Nigeria’s refining capacity. The refinery will have a pipeline system, access roads, tank storage facilities, and crude and product-handling facilities along with marine terminal, including a breakwater, jetty and harbor.
