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Dangote Fertilizer Capacity Still at 50% on Gas Supply Issues

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Bala Augie
Bala Augiehttps://moneycentral.com.ng
Bala is the Editor of MoneyCentral Media. Bala is a Fellow (FCA) of the Institute of Chartered Accountants in Nigeria (ICAN) and holds a Bsc in Accounting from the University of Abuja. Bala has over 12 years’ experience in the financial journalism landscape with specialization in the Insurance, markets and Finance sectors.
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The Dangote Fertilizer plants capacity utilization rate is still low at 50% due to gas supply issues, some 3 years after commissioning.

Dangote Fertilizer (DFL) has a total production capacity of 2.8 million tons per annum (MTPA) of Urea and Ammonia.

Chevron and NNPC have committed to supplying gas for 20 years at a rate of 200 million standard cubic feet per day (mscf/day).

Although the project began its first phase of production in 2021, the average utilization rate improved but remains low at just 50% in 2023 (up from 32% in 2022).

The utilisation rate was hindered by inadequate gas supply which affects operational efficiency.

Dangote Fertiliser Limited is the largest Granulated Urea Fertiliser complex in Africa, with an investment of $2.5 Billion, the plant has a capacity of 3 million metric tonnes per annum (MMTPA).



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