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Thursday, March 30, 2023

Dangote Refinery Will Convert Crude Oil into These Value-added Products

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The Dangote Petroleum Refinery and Petrochemicals (DPRP) plant is undertaking construction of an integrated crude oil refinery and petrochemical plant that will convert crude oil into numerous value-added fuels and other products.

The refinery will have crude oil processing capacity of 650,000 barrels per day (bpd) in order to achieve quality refined petroleum products and position Nigeria as a net exporter of refined petroleum products and petrochemicals.

The refinery has been designed for a wide range of crudes including most of the African crudes, a few of Middle Eastern crudes and the American Light tight oil (LTO).

Dangote refinery once operational will convert crude oil, sourced from around the globe, into various products such as gasoline, kerosene/Jet fuel, diesel, propane/LPG, Polypropylene, and other value added fuels.

Some of these products are used to produce petrochemicals used for making plastics and other products.

The initial production capacity at the refinery will be a 27.2 million tonnes a year, or 74,538 tonnes per day broken down into these specific products, according to internal data about the refinery seen by MoneyCentral.

The project has achieved 95% overall completion and is on track to be commissioned in 2022. The plan is to commence operations in earnest with a target to achieve stable operations and cash flow generation by the first half of 2023.

The plant will ramp up subsequently with a target to operate at full capacity from 2024 onward and the total capex to be spent for the whole of 2022 to deliver mechanical completion of the project is ~$1.2bn.

Post completion, the refinery will become the dominant fuel supplier in Nigeria, with the ability to export to other parts of Africa, Europe and South America.

It’s relatively high Nelson complexity index of 9.5 results from its capability to refine crude into mostly high value products, providing it a strong competitive edge against older refineries in the region.

The refinery has flexibility to direct most of its jet fuel / kerosene output into its diesel production if desired and can regulate its output between gasoline and diesel to better match market demand.

The power infrastructure allows the refinery to be completely independent of any national grid and additional redundancies have been built in to provide stability in case of unexpected outages.

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