The Organisation of Petroleum Exporting Countries (OPEC) is anticipating a deal with Dangote refineries to drive refining capacity expansion in Africa, by 2020.
The refinery, which is still under construction, is estimated to be worth $9-$14 billion. It will be the first privately owned refinery with the highest refining capacity in Nigeria.
OPEC’s 10th edition World Oil Outlook (WOO), says that the refinery will bring the already existing refining capacity in Nigeria to sufficiency. So much so that they are considering working with him in order to improve the overall refining capacity of Africa.
Dangote refineries will operate on a capacity of about 500,000 – 650,000 barrels per day (BPD). Going by this plan, the Dangote Group refinery will be the single largest refinery in the world.
“Of several possible refining projects, one that may materialize in the medium-term is the grassroots 650,000 b/d Dangote refinery and an associated greenfield fertilizer plant in Lagos. If built, this refinery would be Nigeria’s first privately owned and operated refinery.
“Projected investments in Africa through to 2021 are seen at around $20 billion. A large share of this is attributed to two projects – Dangote in Nigeria and the Sonangol’s Lobito project in Angola.”
As OPEC prioritizes the progress in partnering with Dangote Refineries, an estimated 0.6 mb/d of new crude distillation capacity will be available in Africa by the end of 2021, all things being equal.
According to OPEC, regardless of the inconsistencies “oil and gas are expected to supply around 53% of the global energy demand by 2040.”
Back home in Nigeria, Africa’s richest man, Aliko Dangote, has declared his plans to generate about 12000 megawatts of electricity for Nigeria by 2018.
“Our gas project would have our gas pipelines on the seabed. The output should be able to provide about 12,000MW of power. We see a lot of transformation when we are done with most of our projects by 2018.”