Dangote refinery is a 650,000 barrels per day (bpd) integrated refinery and petrochemical project under construction in the Lekki Free Zone near Lagos, Nigeria. It is expected to be the Africa’s biggest oil refinery and the world’s biggest single-train facility, upon completion in 2020.
Dangote Oil Refinery, a company owned by the Nigeria-based Dangote Group, is developing the project with an estimated investment of $12bn.
The Dangote refinery will process a variety of light and medium grades of crude to produce Euro-V quality clean fuels including gasoline and diesel as well as jet fuel and polypropylene.
The integrated refinery and petrochemical project is expected to generate 9,500 direct and 25,000 indirect jobs.
Dangote refinery significance for Nigeria
Estimated to hold 37 billion barrels of proven oil reserves, Nigeria is the second biggest oil-rich country in Africa, after Libya.
The West African country is, however, dependent on imported refined fuel products due to lack of domestic refining capacity.
The Dangote refinery will increase Nigeria’s refining capacity two-fold and help meet the increasing domestic fuel demand, while generating foreign exchange through exports.
Dangote oil refinery location and site details
The refinery complex is being developed on a 2,635ha site on the Lekki Free Zone near the Lekki Lagoon, along the coast of Atlantic Ocean.
The geographical location of the refinery is ideal for easy transshipment of refined petroleum products to the international markets.
Dangote has already built a jetty near the project site to receive heavy equipment for the refinery construction.
Dangote oil refinery design details
The processing facilities for the Dangote refinery include a crude distillation unit (CDU) and associated facilities, a mild hydrocracking (MHC) unit, a residual fluid catalytic cracking (RFCC) unit, a naphtha hydrotreater, and a gasoline hydrodesulfurisation (HDS) unit as well as alkylation units.
The refinery complex will also house sulphur recovery and hydrogen generation facilities and a polypropylene unit. Comprising two steam methane reformer (SMR) units, the hydrogen generation facility will generate 200,000Nm³/h of hydrogen and steam to produce sulphur-free fuels.
The other processing units at the refinery include the STRATCO® alkylation unit, the MECS® sulphuric acid regeneration (SAR) unit, the MECS® DynaWave® sulphur recovery unit, and the BELCO® EDV® fluid catalytic cracking unit.
The refinery is designed to produce up to 50 million liters of gasoline and 15 million liters of diesel a day.
The Dangote refinery is expected to produce 10.4 million tonnes (Mt) of gasoline, 4.6Mt of diesel, and 4Mt of jet fuel a year.
It will also annually produce 0.69Mt of polypropylene, 0.24Mt of propane, 32,000t of Sulphur, and 0.5Mt of carbon black feed.
The infrastructure facilities for the refinery complex include a pipeline system, access roads, tank storage facilities, and crude and product-handling facilities.
A marine terminal, including a breakwater, jetty and harbour, has also been developed as part of the project.
Other facilities developed to support the project include an administrative building, guardhouses, fire station, and pump stations.
The refinery complex will also house a fertilizer plant, which will utilize the refinery by-products as raw materials.
Financing for Dangote refinery
A group of local and international banks led by Standard Chartered Bank has agreed to provide a $3.3bn syndicated loan facility for the project.
The United States Trade and Development Agency is providing an N251.3bn ($0.997m) training grant for the human resource development for the refinery operation.
Engineers India is the engineering, procurement, and construction (EPC) contractor for the project.
Honeywell UOP was contracted for the supply of catalyst regeneration and dryer regeneration control systems, column trays, heat exchanger tubes, a modular CCR unit, and catalyst coolers among other equipment.
C&I Leasing was contracted for providing transportation and installation services for mooring systems and subsea pipelines of the refinery.
Hang Xiao Steel Structure Company received a $112m contract to provide steel structure for the refinery.
Jan De Nul Group was engaged for carrying out land reclamation works.
MAN Diesel & Turbo was contracted for supplying two compressor trains, while Air Liquide Engineering & Construction was contracted for supplying the SMR units.
Fabtech (18 columns), Schneider Electric (process automation systems), SOFEC (Catenary Anchor Leg Mooring buoys), and WABAG (raw water treatment plant) are the other suppliers involved in the Dangote refinery project.