$12BN DANGOTE REFINERY: FG ASSURES TOTAL SUPPORT ON PRODUCTS FIXED STOCK, OFFTAKER

 

L-R; Mele Kyari, NNPC GMD, Timipre Sylva,Minister of State for Petroleum Resources, Shakur Rufai Ahmad, DPR Director and Aliku Dangote, President, Dangote Group

…Commended huge investment by Nigerians

The Federal Government has reiterated to deepen its support for the Dangote Refinery and Petrochemical to succeed through products fixed stock and offtaker that will add value to the nation’s economy.

Timipre Sylva, the Minister of State, Petroleum Resources disclosed this during the tour of the massive refinery project in Lagos.

Dangote refinery is situated at Lekki Free Trade Zone in Ibeju Lekki in Lagos.

The Minister was a companied by Mr Mele Kyari, the Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mr Shakur Rufai, acting Director, Department of Petroleum Resources and all heads of NNPC subsidiaries.

Sylva said the Dangote Refinery and Petrochemical was a testament that the country possesses enabling environment for businesses to thrive.

He said that government will support Dangote in areas of fixed stock and offtakers in terms of gas and crude oil, adding that it’s subject to their discussion with Dangote on areas of support.

” This is one of the most impressive projects have ever seen in Nigeria done by Nigerians. It is a very encouraging development. For us as government, we have resolved to support these projects.”

Sylva added that the success of the project so far would boost investors’ confidence in the country’s oil and gas project.

He also implored Nigerians to support the Dangote refinery project with a view to ensuring that it creates more value addition to the nation’s economy.

According to him, it beholds on every Nigerians to support this gagantic projects, which is the pride of our country.

‘‘For an individual to embark on such magnitude of project, it will be a wrong thing if the government and people of Nigeria not to give him maximum support. You have demonstrated patriotism in investing wisely in the sector, urged others to follow suit to invest in Nigeria. We will still continue to churn out policies that will help stimulate growth in the sector,” he said.

The minister asserted that government will ensure that the 12-billion dollars Dangote refinery is adequately support to fast track its completion.

Mr Mele Kyari, NNPC GMD noted that “we are not competing with Dangote but complimenting each other to boost production capacity. Our objective is the same, to make Nigeria a net exporter of crude. If we can’t do this until we have complementary activities between the private sector and government.

Speaking further, “We are working seriously to ensure our refineries works, so that by the time Dangote comes on stream it will complement each other to make Nigeria net exporter of gasoline and other associated products.

“In the next five years, Dangote will add 650,000 barrels, government with 445,000 barrels with others companies coming up to boost capacity,” he said.

In his remarks, Alhaji Aliko Dangote, President, Dangote Group made it known that “We believed in Nigeria and if we don’t do it ourselves, nobody will come down to do it for us.

There is three per cent growth population increase annually in Nigeria, so, apart from that Nigeria are supposed to meet the needs of West, East and Central Africa in terms of supply.

Similarly, Mr Devakumar Edwin, the company’s Group Executive Director, Strategy, Capital Projects and Portfolio Development, said the capacity of the refinery is comparable to 22 per cent of existing refineries in Nigeria.

Edwin said that the asset creates market for 11billion per annum of Nigerian crude and can meet 100 per cent of the Nigerian requirement of all liquid products.

He posited that Nigeria is Africa’s largest crude oil producer, but lacks refining capacity to meet its own fuel needs.

“The Dangote refinery, which is designed to maximise petrol output, will produce enough to allow for a small surplus of that fuel for export. It will also be able to send a large volume of diesel and jet fuel to international markets. We are confident that we can meet 100 per cent of the requirement of the country; so, the balance will go for export, Edwin explained.”

He disclosed that Dangote plans to take advantage of local crude supply, adding that it won’t participate in the crude-for-fuel swap deal that is managed by the Nigerian National Petroleum Corporation (NNPC).

“We are going to buy the crude just at the export price and will sell our products at the import price, the crude swap is operating only for the importers of the product. The new refinery has been designed to process varieties of crude from sweet to light crude sourced both locally, and abroad.”

Dangote plans to export its diesel to Europe and gasoline to Latin America, Western and Central African markets. Evacuation of refined products will be done by sea and through roads.

Dangote will invest in vessels to make sure the company is not held for ransom by any transport operators.

The Africa’s largest oil refinery had revealed that it would deliver its fuels to Nigerian consumers via roads and sea ports, and will effectively replace all of Nigeria’s fuel imports once fully operational.

According to Edwin, “Congested ports and dilapidated roads led some to expect that the company would build a pipeline or other method of getting its fuel to consumers. Fuels would go via “shuttle” boats to Nigerian cities such as Warri and Calabar, and other deliveries would go in trucks.

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