More gains are underway for Nigeria from the emerging Dangote’s 650,000bpd refinery as the company has invested in the East West Offshore Gas Gathering System (EWOGGS) project.
Explaining the new line of associated investment, Dangote’s Group Executive Director, Devakumar Edwin, who spoke at in Lagos on Promoting Efficiency & Clean Fuels in African Refining and Petrochemicals Market at the Oil Trading and Logistics (OTL) conference said the project is expected to unlock significant gas supply and help to reduce gas flaring in Nigeria.
Represented by the Director Business Strategy & Optimization, Dangote Refinery, Mr. Srinivas Rachakonda, the GED averred that “The first phase is expected to deliver gas for the use of Dangote Industries, including the proposed fertiliser plant in the refinery complex, and other identified industrial and power plant users”.
According to him, “With a fast-growing population and poor infrastructure, the refinery will also reposition Nigeria as an attractive investment destination and a major industrial hub in Africa”.
Also speaking during the session, former Executive Secretary of the Petroleum Product Pricing Regulatory Agency (PPPRA), Reginald Stanly, said Dangote Refinery is going to be a game changer for the entire African downstream industry.
However, he condemned the continuous importation of dirty fuel into the country, saying “Emission is the highest killer today in Nigeria. I commend Dangote Refinery for its decision to produce Euro V specification of gasoline. Dumping of toxic fuel in the country is not acceptable, the earlier they stop it, the better for us”.
The company used the conference to urge Major Oil Marketers to retool their strategies to remain in business when Dangote refinery finally comes on stream.
Earlier in his welcome address, Chairman of OTL Africa Downstream, Mr. Emeka Akabogu, said recent market tendencies have shown appetite for some categories of investment in the downstream value chain.
The energy industry stakeholder noted that there have been considerable investments in retail outlet development, marine logistics platforms and storage facilities across the country, while several refinery projects that aim to balance the discrepancy caused by inadequate refining capacity on the continent are currently underway.
Akabogu added that other emerging developments, issues bordering on regulation of the industry and independence of the regulators themselves have also received the attention of stakeholders, stressing that policy development and implementation have not kept pace with the urgency of industry needs and the appetite of market operators.
On his assessment of the OTL conference, Akabogu averred that “This year’s event will further empower African oil and gas companies to harness the economic potential of the downstream sector in areas ranging from crude oil value addition to refining, to development of critical supply infrastructure across African States. Issues to be discussed include prospects for refining in Africa, finance for downstream trading and infrastructure projects, regional cooperation, mergers, takeovers and lots more. We will also see discussions on the sector’s disruptive influences, the rising profile and application of Liquefied Petroleum Gas (LPG) across the continent, as well as renewable energy”.
