With Dangote’s 65000 barrels per-day refinery in full operation from 2021, Nigeria is expected to lead refinery capacity additions from planned and announced refineries (new-build) in Africa by 2023.
Aliko Dangote, Africa’s richest man, will begin oil production from two assets he snapped up from Royal Dutch Shell Plc in July, adding a new source of income to a fast expanding business empire that includes cement, flour and sugar firms.
Africa’s most prominent industrialist is working with Chinese and Malaysian contractors and has completed a development plan for the Kalaekule field on its Oil Mining Lease 72 asset, Devakumar Edwin, the group executive director at Dangote Industries Ltd. said in an interview. Work will then move to an undeveloped KI discovery on Block 71, a small shallow water asset in southeastern Niger River delta.
With the refinery, Dangote aims to help end Africa’s largest oil producer’s reliance on imported fuel. The plant will reach “mechanical completion” in December and full operations is expected to start by the middle of 2021, Edwin said.
In Nigeria, 34 new-build sites are expected to start operations from 2019 to 2023 with a capacity of 2,135 thousand barrels per day (mbd).
The total refining capacity of Nigeria in 2018 was 446 mbd. Nigeria’s contribution to Africa’s total refining capacity was 12.6 per cent. Port Harcourt I, Warri I and Kaduna I are the major refineries in the country.
Of these, Lagos I, Bayelsa III and Mashi are the top upcoming refineries by 2023. Lagos I is scheduled to start operations by 2021 with a capacity of 650 mbd, followed by Bayelsa III and Mashi refineries, which are expected to start commercial operations by 2023 with a capacity of 150 mbd each.
Refining capacity in Africa increased from 3,423 mbd in 2013 to 3,544 mbd in 2018 at an average annual growth rate (AAGR) of 0.7 per cent. It is expected to increase from 3,544 thousand barrels per day (mbd) in 2018 to 7,841 mbd by 2023 at an AAGR of 15.9 per cent, the report found.
Egypt, Algeria, South Africa, Nigeria, and Libya accounted for over 78.2 per cent of the total refining capacity of the region in 2018, according to the GlobalData’s “Refining Industry Outlook in Africa to 2023 – Capacity and Capital Expenditure Outlook with Details of All Operating and Planned Refineries” report.
The total refining capacity of Egypt in 2018 was 751 mbd. Egypt’s contribution to Africa’s total refining capacity was 21.2 per cent. Mostorod I, El Mex and Alexandria are the major refineries in the country.