Overview: Beyond Petrochemicals – The Real Value of Dangote Refinery

By Gboyega Oni

Since it commenced full operations over a year ago, the Dangote Petrochemicals Refinery, acclaimed as the largest refinery in the world has not only redefine operations in the petroleum sector, it has also disrupted petroleum products marketing in Nigeria and beyond.

This development, has not only assuaged the agony of petroleum products consumers, it has also contributed positively to the economy of the nation in terms of revenue generation, foreign exchange earnings and job creation.

However, true value of the Dangote Petroleum Refinery and Petrochemicals is beyond all these. But rather its real value is an amalgamation of  petroleum and allied products from its stable, the human, capital and material resources that encapsulated the brand.

Situated on a 2635 hectares of land at the Lekki Free Trade Zone, Lagos, a cursory list of its facilities include landfall, port jetty, 500 megawatts power station, giant tanks of various capacities totalling 120 million litres, networks of pipelines, modern laboratories, giant distillers for various products, and fertilizer plant.

PortNews was on a media tour of the magnificent world class refinery recently.

The tour took off at the landfall to the jetty,  the fertilizer plant, the laboratory, the control section and other facilities.

The landfall section comprises giant pipes of various sizes which run from the sea with the crude to the refinery and back to the Single Pont Mooring System in the sea where finished products are loaded.

Loading activities in the sea could be gleaned easily with a giant binocular.

The next point of call is the  Refinery Jetty. For an unhindered construction of the refinery, Dangote built a jetty purposely to convey some special equipment and machines needed for the refinery which couldn’t be handled by both  Apapa and Tin Can Island by moving them through the busy Lagos roads . Since the completion of the refinery, the jetty has become a gateway through which  fertilizer products, from the  Dangote Fertilizer plant, situated within the refinery complex, are shipped to other parts of the world.

Since  commencing operations, Dangote Refinery Jetty has handled 800 vessels. However, no fewer than 600 vessels are expected to berth at the jetty in 2026.

The jetty will also  accommodate  ships from Brazil  which come in regularly with raw materials and ships coming from other countries. The jetty is also used to export  fertilizer.

While the well equipped laboratory  tests the quality of crude and  finished products, from the control room, crude flow and PMS production are monitored. Just as the distribution of PMS and other products are tracked. Dangote Fertilizer

All raw materials for fertilizer production come  directly from the refinery. The fertilizer plant production capacity  exceeds  local demands as 70 % of the fertilizer are exported.

“We have ability to exceed the local demand. We satisfy local market before going abroad,” said the head of the Dangote Fertilizer.

In the refinery also is a 500 megawatts power plant that generates and supplies steady electricity.

Addressing the media , Mr. David Bird, Managing Director of Dangote Refinery and Petrochemical (DPRP), said the  refinery, which is built and functions like a European/Asian merchant refinery model, is linked directly to the sea for ease distribution unlike any other refinery in Nigeria. He said it also distributes its products by land while observing highest quality standards in the petroleum industry.

“Our refinery has a state-of-the art refining and blending configuration model and hybrid automation infrastructure designed to meet modern quality fuel supply at the international best practice standards,” Bird said.

Adding that the refinery aims to become the world best and the largest refinery.

According to Bird, “Dangote Petroleum Refinery and Petrochemicals has set new standards for cleaner fuels in Africa in both short-term and long-term, to stop Africa, particularly West Africa, from being a preferred destination of inferior and substandard petroleum products for foreign countries.”

Bird, who said the refinery has the capacity to produce between five and six products, reiterated the desire of Dangote Petroleum Refinery and Petrochemicals in meeting local fuel demands of Nigerians and prioritising the export market by mainly sourcing crude supply to ensure interrupted operations.

On the quality of the products, Bird said, “Dangote Refinery produces high quality fuels which are aligned with international environmental and health standards.” He debunked the rumour that the company produces substandard fuels.

Explaining further, Bird said, “Dangote Refinery operates under a stringent and high standard international best practices and cannot compromise by engaging in substandard or less quality fuels to Nigerians because it is a Nigerian company but an international certified refinery company.

“We source about 25 crude stocks but the one from Nigeria takes the highest share of 65 percent while other sources take 35 per cent.

“Dangote Refinery is not a single trade entity, apart from petroleum we have other intermediate products from our production process such as diesel, kerosene, Jet A1, gas and other downstream products.”

On the Crude for Naira Policy, Bird said “we want to sustain the policy.”

Also speaking, Mr. Tony Chiejina, the Group Branding and Communications Manager, Dangote Group, observed that fuel scarcity was associated with every festive season but with the advent of Dangote Refinery, this has stopped.

He maintained that Dangote Petroleum Refinery and Petrochemicals means well for Nigeria and urged industry stakeholders and Nigerians to join hands together to support the oil company towards delivering on its goals and  objectives for Nigeria’s oil and gas industry.

Concluding,  he revealed that the company’s  Vision 2030 is focused on growth and expansion.