Africa needs to consider alternatives for cutting its energy prices more than ever, as energy costs significantly impact the development or stagnation of any given economy.
Along with necessities like food, water, and other items that are specific and necessary to different places, the cost of energy is a significant factor in determining inflation.
Despite having enormous oil reserves, Africa rarely refines its oil, resulting in a massive shortfall in its oil revenue.
Simply put, most oil-producing African nations, especially those in Sub-Saharan Africa, sell their crude oil to nations outside the continent for a set price and then purchase that oil back in a refined form for a comparable price.
The Dangote refinery will be a game changer as it will allow Nigeria and Africa to refine their oil on African soil. If completed, the planned project is already being hailed as a significant achievement for Africa. It is anticipated to be the world’s biggest vertically integrated petrochemical complex.
Below are some exciting things you need to know about Dangote’s new oil refinery:
Objective
The project aims to create an excess of petroleum for export to other African nations and maybe other parts of the world, bringing about an estimated $11 billion in petroleum products from Nigeria annually.
Cost
The $25 billion Dangote Refinery is Africa’s most expensive industrial complex and possibly the entire globe. It is the largest single investment made on the African continent by a single person.
Timeline
The refinery construction was scheduled to start in 2022, but a few hiccups delayed the schedule. It is to be commissioned on the 24th of January, 2023 and is expected to be completed in 2026.
Job creation
The anticipated project aims at providing about 135,000 permanent jobs and 300,000 direct and indirect jobs.
Capacity
The refinery might eventually produce 650,000 barrels of oil per day. It will also generate 4 million metric tons of jet fuel daily, 3 billion standard cubic feet of gas, 65 million litres of premium motor spirits (petrol), 15 million litres of diesel, and 8 million tons of petroleum products yearly.
Location
The refinery, which will encompass over 2,635 hectares, will be located in Lagos, Nigeria, specifically in the Lekki Free zone. It takes about ten standard football fields to contain the refinery.
Power generation
The Dangote refinery is estimated to generate electricity of up to 12,000 MegaWatts.
Disclaimer
The information in this article was curated from online sources. NewsWireNGR or its editorial team cannot independently verify all details.
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A very nice write up. The project is laudable and I hope the refinery will bring expected development to the country and Africa as a whole.