Business News

Dangote refinery to generate $27 billion annual revenue

The 650,000 bpd Dangote refinery is set to generate $27 billion in annual revenue at full capacity. This is according to Naijaonpoint’ findings.

Naijaonpoint found out that a new refinery is expected to make around $27 billion every year by selling things like petrol and chemicals.

At the start, it will refine 350,000 barrels per day, and later on, it plans to increase that to 650,000 barrels per day. They are going to begin by making diesel, aviation fuel, and gas, and then move on to making petrol later.

The Dangote refinery will make different types of fuel like petrol, aviation fuel, kerosene, and diesel. It will also produce things like urea and polypropylene for both domestic and international use.

Some special products from the refinery, like naphtha and polypropylene, will help other industries grow, such as cosmetics, plastics, and textiles.

This refinery is built to handle Nigerian crude oil but can also work with oils from other places. It can process oils from many African countries, the Middle East (like Arab Light), the US (Light tight oil), and others as well.

The company’s data indicates that motor gasoline (petrol) production is projected to rise from nearly zero currently to 249,000 barrels per day (b/d) in 2026 and exceed 300,000 b/d by 2033. Additionally, the report states that petrol imports will decrease by over half to 154,000 b/d by 2026.

Note that the refinery has as of Thursday evening, received its first batch of crude oil, based on a supply agreement with the Nigerian National Petroleum Company Limited (NNPCL).

As the refinery goes into active production of petroleum products and petrochemicals, Femi Otedola, a billionaire industrialist said on December 10, that the refinery will generate $20 billion and aid Nigeria’s economic transformation.

Otedola also said that the Dangote refinery has carbon capture technologies and storage processes that will capture up to 90%+ of the carbon emitted and also play a significant role in reducing well-to-tank carbon emissions from crude oil maritime transportation, thereby playing its role in helping Nigeria meet its target for net-zero emissions by 2060. He also highlighted the fact that the refinery recycles 100% of its water.

Meanwhile, the heat coming out of the process is fully captured to produce 50MW of power.

The refinery was built to take crude through its two SPMs located 25 kilometres from the shore and to discharge petroleum products through three separate SPMs. In addition, the refinery can load 2,900 trucks a day at its truck-loading gantries.

Dangote Refinery has a self-sufficient marine facility with the ability to handle the largest vessel globally available. In addition, all products from the refinery will conform to Euro V specifications