Dangote Group has announced that refined petroleum products from its 650,000 per day refinery under construction will be in the market from the last quarter of 2021. Products from its already completed fertiliser plant will also be in the market this month.
The Company’s Executive Director, Strategy, Capital Projects and Portfolio Development, Devakumar Edwin, made this known to journalists in Lagos that the refinery is 80% complete. He said that the engineering and construction were 100% over while procurement was 98% ready.
He said Dangote’s primary aim of venturing into building a petroleum refinery is to add value to the country. He said the increase in refining capacity in the country will result in a rise in the supply of petroleum products and will bring down the prices.
He said 20,000 people are working in the refinery project and the group plans to employ over 240,000 people. He reiterated that one of the focuses of the President of the group, Alhaji Aliko Dangote, is to create employment for Nigerians and help to resolve the unemployment rate in Nigeria.
Excerpts from his statement to journalists:
“If you look at the overall percentage completion, we are at 80 per cent. But that overall includes engineering and design, which is 100 per cent over. Procurement is about 98 per cent over. So, it covers various aspects. But the core activity which is going on today is construction.”
“So, if you look at exclusively construction, we have finished 60 per cent of construction.”
“We had the impact of coronavirus because many of the countries where our equipment are being manufactured were affected.”
“So, now, we hope to complete everything – all the assembling by the middle of next year. Then, we will start the commissioning process. Middle of next year, we start the commissioning process, and it’s a huge refinery, the commissioning process may take three to four months.”
“And then with start of products coming into the market. So, by last quarter next year, we should have our products coming into the market.”
“This is a basic economic principle: demand and supply. When the demand exceeds supply, the price will go up. When the supply exceeds demand, the price will come down.”
“You can see it in the refinery too. BUA too has announced that they are going to put up 200,000 barrels per day refinery. And you can see a lot of cottage refineries coming up – 5,000 barrels, 3000 barrels. So as more capacity comes in, the philosophy of demand and supply will automatically act.”
“Yes, it (petrol price) will not crash in one day but with a period of time it will come down to almost half the price currently.”
“One of the primary reasons foreign exchange is just getting drained out is fuel.”
“And talking of fertiliser, actually the commissioning has started. I hope by the grace of God, we will have the product coming into the market in this month.”