TheCable

Dangote group, one of the most diversified business conglomerates in Nigeria, expects an oil refinery it is building in Nigeria to come on stream in late 2017 or the first half of 2018.

The plant, which would be located in Lagos, will be able to process 500,000 barrels of crude a day on completion.

George Nicolaides, Dangote Industries’ operations director for petroleum refining, said this in an interview at the Platts African Refining Summit in Cape Town on Monday.

“The site is being cleared, the plant is being designed. We are close to the beginning of detailed engineering,” he said.

In September last year, Dangote said it had agreed on a $3.3 billion loan with 12 Nigerian and foreign lenders to build the refinery as well as a petrochemical and fertilizer complex costing a total of $9 billion.

At the time, the facility in Africa’s biggest economy was expected to be completed in 2016 and the capacity of the refinery was put at 400,000 barrels a day.

Nigeria relies on fuel imports to meet more than 70 per cent of its needs. Four state refineries with a combined capacity of 445,000 barrels a day are operating at a fraction of that because of poor maintenance and aging equipment.

“Supplying the local market is the primary objective,” Nicolaides said.

“Naturally we can move product to the region. The government is being very supportive, very enthusiastic about this project. We are not looking for or wanting any particular subsidies.”