Dangote listed among 158 refineries coming on stream globally from 2019 to 2023
…China leads with $53.2bn capex
First class world data and analytics group, GlobalData, has revealed that global investments in crude oil refining facilities will rise exponentially starting from this through 2023 with about 158 mega refineries coming on stream on capital expenditure (capex) of around US$520bn.
The report tagged: ‘Global Planned Refining Industry Outlook to 2023.’ Noted that “Capacity and Capital Expenditure (capex) forecasts with details of all planned refineries’ revealed that the total global planned and announced refining capacity between now and 2023 will be 17,882 bpd”.
The report said whereas China will lead other parts of the world with 3,121 bopd from its emerging 10 new refineries put at the cost of US$53.2bn, in Africa, Nigeria’s Dangote Oil Refining Company (DORC) Limited in Lekki put at $12bn capex will shape up the oil and gas productivity rating of the continent and global second largest country in terms of capacity additions.
GlobalData averred that “Between 2019 and 2023, 158 new refineries worldwide are scheduled to start operations. Total new-build capital expenditure (capex) of around US$520bn is expected to be spent globally on planned and announced refineries.” This is based on the fact that by 2023, Nigeria would add about 2,225 bopd of refining capacity.
The report however added that Iraq would emerge as the third largest nation with 1,190 bopd refining capacity additions from planned refineries added that between 2019 and 2023, with a capex plan of about US$41 billion in new plants.
The report did not make any mention of Nigeria’s four moribund refineries in Kaduna, Warri and two in Port Harcourt because there has not been any genuine revival plan of the federal government on them in the last four years of current administration.
Still on DORC, Business Hilights gathered that the ongoing construction activities were recently stepped up with the arrival of Regenerator for the Residual Fluid Catalytic (FCC) cracker, one of the major components of its refinery.
The report also revealed that “The refinery equipment are coming in semi-finished shape and we will finish them up here at the site.
According to Rama Putta, Head of Quality Assurance/Quality Compliance and Construction, at DORC, “The remaining are being manufactured in various countries, including China, India, America, South Korea, Singapore and Malaysia.”
He further reassured that the refinery is being designed to accommodate multiple grades of domestic and foreign crude and process these into high-quality gasoline, diesel, kerosene, and aviation fuels that meet Euro V emissions specifications, plus polypropylene.
Corroborating Putta’s position, Executive Director, Dangote Group, Devakumar Edwin said the refinery is coming on stream to stimulate economic development in Nigeria because it is structured to process a variety of light and medium grades of crude and produce extremely clean fuels that meet Euro V specification.
