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Wednesday, March 29, 2023

Dangote Fertiliser Revenues Hit N30bn as 55% of Output Exported in 2021

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Dangote Fertiliser generated N30 billion in revenues and contributed 2.3% to Dangote Group’s revenue (as of 30 September 2021), as the first line of the project produced 347,000 tonnes of urea in 2021,  according to data seen by MoneyCentral.

Dangote Fertiliser comprises of two 4,000 tons per day (TPD) urea production lines, positioning the Dangote Group as a leading manufacturer of urea fertiliser globally.

The second line commenced production of ammonia in February 2022, with stable production of urea expected to be achieved by end of May 2022. Ammonia production will be used in its entirety as feedstock for the Urea plant.

Dangote Fertiliser intends to sell 75% of its produce in international markets upon the commissioning of the second line having recorded 55% in export sales so far.

The plant benefits from 200mscf/day assured gas supply of 20 years from Chevron and NPDC. Dangote Fertiliser Project is a natural gas-based granulated Urea fertiliser manufacturing facility with a capacity of 2.8MTPA.

The project construction and design process commenced in 2013, with the commissioning of SAIPEM as EPC contractor, and the procurement of land in the Dangote Industries Free Zone.

Dangote Fertiliser plant’s production capacity (8,000 tons per day) is larger than the combined existing Urea production capacity in Nigeria from Indorama (4,000 tons per day), and Notore (1.500 tons per day).

This potentially provides an avenue for competitive pricing and ability to take advantage of economies of scale in production. The Project has an overall outlay of $2.5bn and was commissioned in 2021.

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