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Chevron Dangote Fet

Fertiliser backward integration loading as Dangote plant begins pre-testing

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Leading continental industrial giant, Dangote Group is set to repeat the feat of backward integration it led others to achieve in cement sector few years ago in the nation’s fertilizer sub sector.

Strong indication to this came as the company begins pre-testing of its $2bn fertiliser plant in Lekki, Lagos State.

Business Hilights investigations revealed that apart from indications that the purpose built plant is good to go, as part of its planned inauguration; Dangote Fertiliser Limited has announced the commencement of pre-testing works on the Granulated Urea Fertiliser complex within the Dangote Free Zone in Ibeju Lekki.

Additional details showed that the plant is coming with a capacity of 3 million tonnes per annum, thus giving it the status of the biggest project in the fertiliser industry across Africa.

Delivery facts showed that Italian giant, Siapem of Italy is the Engineering, Procurement and Supervision (EP) Contractor for the project, while Tata Consulting Engineers, India, is the Project Management Consultants (PMC).

Already, ahead of the commissioning, several critical sections of the plant are going through various stages of pre-commissioning and test-run, while all the sections of the plant, including the central control room, ammonia and urea bulk storage, cooling tower, power generator plant, granulation plant, have all been completed and are going through pre-testing. Business Hilights recalls that earlier last year, Dangote Fertiliser Limited sealed gas supply from the Nigerian Gas Company and Chevron Nigeria Limited under its earlier signed gas sales purchase agreement to supply 70 million standard cubic feet per day (Scf/d) of natural gas per day.

During the signing ceremony in Lagos, chairman of Chevron Nigeria Limited, Mr Jeff Ewing assured regular supplies even as Dangote Group officials expressed happiness on the gas supply deal, saying it will further deepen the growth of indigenous gas industry and ease of doing business.

Business Hilights is an online news channel conceptualized and structured to report and track on a daily basis; latest developments in critical business sectors to serve as a one stop news gateway for governments, foreign and indigenous investors.
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