Business Hilights
Tracking Nigeria's Headline Business News Online

Algeria now refines sufficient fuel to meet domestic demand— Minister

…As Dangote votes 53% refinery capacity for petrol

Algeria has set fresh African record of being the first in current generation to refine sufficient petroleum for its country.

This was revealed Thursday by the newly appointed Energy Minister, Mohamed Arkab.

Explaining more in London while confirming attendance to the 26th Africa Oil Week (AOW) in Cape Town this November, he said “Algeria now produces sufficient fuel to meet domestic demand and has not had to import since 2018.”

Business Hilights recalls that Algeria, the North African oil and gas producer, is currently ranked 16th-largest globally in terms of proven oil reserves and 10th-largest in terms of proven gas reserves.

This is as the President of Dangote Group, Alhaji Aliko Dangote has distanced himself from speculations that his 650,000bpd capacity refinery in Lekki will compete with Nigeria’s all-four moribund refineries whose total capacity of 445,000bpd is yet to be met in the last couple of years.

Speaking during a recent visit to the NNPC Towers, Abuja, the Group General Manager, Group Public Affairs Division at NNPC, Ndu Ughamadu quoted him him as saying that “The most important thing for us is to see how we can partner with the NNPC; it is not to see how we can compete with the NNPC. We would like the NNPC to be part of us and we also want to be part of the NNPC.  I think that is the only way we can achieve a win-win situation.”

Dangote Refinery
L-r: President/CE, Dangote Industries Limited, Aliko Dangote; Former Prime Minister of Ethiopia, Hailemariam Desalegn; and Group Executive Director, Strategy, Capital Projects & Portfolio Development, Dangote Industries Limited, Devakumar Edwin during the Former Prime Minister’s visit to the Dangote Refinery and Fertilizer Projects in Lekki, Lagos on Friday, April 26, 2019. Photo: Business Hilights

Accordingly, he averred that upon completion of his refinery, it will dedicate 53 per cent of the capacity to the production of petrol which means dedicating 344,500 barrels out of 650,000 barrels per day refining capacity to the production of petrol so as to saturate the nation with the most sought after product.

Giving insights on his first set of priorities, new Algerian Energy chief revealed that drafting a new hydrocarbon law, which aims to counter a “slowdown in new exploration and production contracts” and “restore the attractiveness of the country’s extractive industries, increase production levels and bring in foreign direct investment to the petroleum sector, without threatening national sovereignty are uppermost in his targets.

Continuing, Mohamed Arkab said he also focus on upgrading existing refineries to meet international standards of consumption, as well as environmental and industry safety.

During a visit to the newly inaugurated Sidi R’Cine Refinery in Algiers, which was re-opened after significant modernization, the Minister noted that “This rehabilitation operation will inevitably lead us to achieve a surplus of production, which can be exported in the future”.