Dangote Oil Refinery Launched Officially. Maybe This Will Solve Nigeria's Chronic Fuel Shortages

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Africa’s biggest oil refinery has been opened in Nigeria, where it is hoped it will alleviate chronic fuel shortages.

Nigeria is a major oil producer but most of this is sent abroad while it has to import the refined fuel used in vehicles and elsewhere.

As a result the country often faces chronic fuel shortages.

This is the problem that the $19bn (£15.2bn) refinery, owned by Africa’s richest man, Aliko Dangote, is intended to tackle.

“This is a game-changer for the Nigerian people,” said President Muhammadu Buhari.

The plant, which is not yet operational, has the capacity to produce about 650,000 barrels of petroleum products a day - more than enough to supply the country’s needs. It also includes a power station, deep seaport and fertiliser plant.

Nigeria’s existing refineries have been completely shut down for over three years owing to oil theft, pipeline vandalism and structural neglect.

If it works as planned, the plant could make a real change to the lives of Nigerians: “Every time there is fuel scarcity, I don’t open my shop because there’s no light [electricity] to work and I can’t buy fuel for my generator,” a young hairdresser from Lagos told the BBC.

At Monday’s launch, Mr Dangote outlined his hopes for the refinery: “Our first goal is to ramp up production of the various products to ensure that within this year, we are able to fully satisfy the nation’s demand for quality products.”

However, it is not clear what impact the plant will have on the price of fuel in a country where retail prices are subsidised. The government says these subsidies will soon be removed - last year they took up at least a quarter of the national budget.

Mr Dangote’s plant in Lagos, which took nearly seven years to build, is said to be the world’s largest single-train refinery, meaning the plant has one integrated distillery system which can produce a variety of products and petrochemicals, instead of having different units for each type of product.

Tamu sana.

This smooth brained bonobo does not joke around these are investments made by whole sovereign nations not individuals.

He wanted to setup a cement factory in Kenya Arap Mashamba wakadai kickbacks nzito saidi akakataa

Things I love to see. Hii sasa ndio real investment from serious person for important problem.
“This is the problem that the $19bn (£15.2bn) refinery, owned by Africa’s richest man, Aliko Dangote, is intended to tackle.”

Halafu look at Kenya’s situation. Where are our priorities.

https://www.standardmedia.co.ke/business/business/article/2001473472/blow-for-kenya-oil-dream-as-indian-firms-ditch-sh411b-deal
[SIZE=4]Blow for Kenya oil dream as Indian firms ditch Sh411b deal
Kenya’s petrodollar dreams have gone up in smoke after two Indian state-backed energy majors called off talks for buying a multi-billion stake in Tullow Oil’s Lokichar oil field in Kenya.

The deal was estimated last year to be worth between $2 billion (Sh274 billion) and $3 billion (Sh411 billion).

A news report by local Indian news media quoting people in the know said the decision to end discussions lasting several months was taken “after senior executives from the two Indian suitors visited Kenya in July last year.”

Executives of Indian Oil Corp, which is India’s top refiner, and ONGC Videsh - the country’s second-largest oil and gas firm - last year met outgoing top officials of Kenya’s Energy ministry in an effort to smooth the deal.
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The two Indian companies had been in talks to acquire the stake in Turkana oil projects held by Africa Oil and its partners Tullow in a deal earlier estimated to surpass Sh411 billion ($3 billion). The report by The Times of India did not disclose the reason the Indian energy majors backed out of the deal.

The collapse of the deal marks a huge blow to Kenya’s aspiration to export oil on a commercial scale since Tullow discovered crude in the East African country in 2012.

A deep-pocketed strategic partner would enable Tullow and its partners to cushion its risks for the multi-billion shilling project that includes setting up a crude pipeline and processing facilities for the oilfields.

Failure to secure a strategic investor would deal a blow to Kenya’s hopes of petro-dollars needed to fuel economic growth as the project would face an uncertain future.

The large fiscal windfall associated with new oil resource revenue could help the new Kenya Kwanza government boost development and improve the standards of living for citizens through access to key services and amenities such as roads, health, food security and education.

“Failure to secure a strategic partner would impact our ability to progress the Kenya project to final investment decision and unlock value,” said Tullow earlier.

Kenya’s OWN Billionaires could put up an enormous refinery than Dangote’s with the Capacity to supply entire East and southern Africa

Sasa tatizo iko wapi?

Even Saudis are investing in Dangote…

https://thestreetjournal.org/saudi-arabia-plans-to-invest-in-the-dangote-refinery-in-nigeria/

https://thestreetjournal.org/saudi-arabia-plans-to-invest-in-the-dangote-refinery-in-nigeria/

The Nigerian central bank head has said that Dangote has already paid more than 70% of the loan borrowed to put up the facility even before commencing operations. Gotta admire Dangote