Dangote refinery not importing gasoline, MD clarifies

The Managing Director of the Dangote Petroleum Refinery, David Fowl, has mentioned that the $20bn facility just isn’t importing completed petroleum merchandise, explaining that the refinery operates a service provider refining mannequin that doesn’t rely solely on crude oil.

In accordance with Fowl, what some people referred to as gasoline was intermediate feedstock. Fowl made the clarification whereas addressing newsmen on the refinery in Lekki, Lagos, on Wednesday.

Throughout a technical presentation on the refinery’s operations, he harassed that the Dangote refinery was intentionally designed to function in another way from typical refineries in crude-producing international locations.

In accordance with him, not like refineries in international locations akin to Saudi Arabia, Kuwait, or the United Arab Emirates, that are usually positioned on the finish of crude oil pipelines and rely largely on home crude provide, the Dangote refinery doesn’t merely sit on a pipeline processing simply Nigerian crude.

“Nigeria is a crude-producing nation, however Dangote Refinery doesn’t sit on the tip of a pipeline simply processing the nation’s crude oil solely. Dangote is a service provider refinery,” Fowl mentioned.

He defined {that a} service provider refinery is one which sources its crude oils and different feedstocks from the worldwide market, normally delivered by sea, permitting it to course of all kinds of crude and intermediate parts somewhat than counting on a single crude stream.

Fowl mentioned this mannequin, which is frequent in main refining hubs akin to Europe, Singapore, and Taiwan, was deliberately replicated in Nigeria to maximise worth and guarantee operational flexibility.

For instance this construction, he identified that the refinery has a considerably bigger tank farm than processing models, noting that storage capability is central to service provider refining as a result of it permits totally different crudes and feedstocks to be segregated, blended, and processed in various mixtures.

“You deliver in several crudes. You must segregate these crudes, and you then combine them to make sure crude cocktails which your plant can course of,” he defined.

Fowl added that every crude produces totally different proportions of merchandise akin to LPG, naphtha, kerosene, and diesel, and that processing various crude blends can result in underutilisation of some models if extra feedstocks are usually not launched.

As a result of refining is a capital-intensive enterprise, he harassed that maximising utilisation throughout all models is vital. “It’s all about utilisation. Identical to an aeroplane or a lodge, when you construct it, you wish to drive occupancy. The identical precept applies to refining,” he mentioned.

The Dangote refinery MD famous that the principle worth in refining doesn’t lie in crude distillation alone, which merely separates merchandise primarily based on what nature offers, however in conversion and processing models that improve low-value supplies into high-value merchandise.

He defined that the refinery converts heavy residues from crude distillation — supplies that may in any other case be low-value — into high-value white merchandise utilizing superior conversion models such because the Residue Fluidised Catalytic Cracker.

In accordance with him, when sure crudes produce decrease volumes of residue, the refinery can import residue feedstocks to maintain these conversion models absolutely loaded. “It is a actual moneymaker for us. We crack low-value residue and convert it into high-value white product,” Fowl disclosed.

He added that the identical precept applies throughout the refinery, with the ability designed to simply accept intermediate feedstocks akin to cracked distillates, reformate, mild cycle oil, heavy diesel, and LPG, which may be additional processed into completed fuels that meet world specs.

Addressing issues about imports, Fowl mentioned the supplies being introduced into the refinery are usually not gasoline for direct consumption however semi-finished merchandise. “I’m a refinery. I’ve little interest in importing completed merchandise. However I shall be importing intermediate feedstocks and parts,” he acknowledged.

He defined that a few of the imported parts embody high-sulphur reformate that different refineries export as a result of they lack the capability to totally course of them. “Now we have the potential to course of these into Euro 5 specification gasoline. This could by no means find yourself in a petroleum pump,” he mentioned.

Fowl additionally defined that some domestically produced Nigerian condensates, regardless of their clear look, have low octane scores and are unsuitable for direct use in automobiles with out additional processing. “They give the impression of being good, however they’re about 75 octane. You wouldn’t need this in your automotive,” he mentioned of some cracked gasoline.

In accordance with him, the refinery’s mixing and processing programs enable these numerous intermediate streams to be upgraded into completed fuels that meet the newest worldwide requirements.

Fowl mentioned the refinery is at the moment producing 50 components per million sulphur petrol and is technically prepared to maneuver to 10 ppm when Nigeria’s gasoline specs are upgraded.

He added that the ability’s merchandise meet world high quality requirements and may be exported to any market. “If we couldn’t make this product to the appropriate specification, we wouldn’t be capable of export it,” he mentioned.

The Dangote refinery boss famous that the plant has already demonstrated its export functionality by delivering gasoline cargoes to america and aviation gasoline to worldwide markets. “Our product can land wherever on this planet as a result of we make the newest specs,” he boasted.

He mentioned Nigeria ought to take pleasure in having a home refining business able to producing cleaner fuels, noting that the shift to increased gasoline requirements carries important public well being advantages.

“Nigeria ought to be extremely proud due to the general public well being advantages that come from having a home refining business that produces fuels to the newest world requirements,” Fowl added.