Dangote oil refinery poses menace to European plants

The oil refinery being built in Lagos, Nigeria by Dangote Industries Limited is a menace to refineries in Europe, which Nigeria depends mostly on for gas imports, a global provider of energy and commodities information has stated. The Editorial Director, Strategic Oil Markets Development, S&P Global Platts, Andrew Bonnington, stated at the S&P Global Platts Lagos Oil & Energy Forum on Thursday that the beginning of operations at the Dangote refinery would probably lead to the closure of some European refineries. READ ALSO: We’ll roll out our forces if APC makes an attempt impeach Saraki – Tambuwal He informed our correspondent on the sidelines of the event, “In Africa, the Dangote refinery is a big story; one of the largest refineries in the world being built in Nigeria, more likely to provide most of or all of Nigeria’s consumption. That clearly has an influence on European refineries, because they export to Nigeria. “It’s unimaginable for me to say precisely what the influence might be, however it’s not factor for European refineries that Dangote refinery is being built.” Based on Bonnington, Europe is the largest supplier of petroleum products to Nigeria, with about 75 per cent of petrol consumed within the nation imported from the continent. Last week, Aliko Dangote, stated he had organized more than $4.5bn in debt financing for his refinery project and aimed to begin production in early 2020. Aliko Dangote, Africa’s richest man, is constructing a refinery with a capacity of 650,000 barrels per day to assist reduce Nigeria’s dependence on imported petroleum products. The President, Dangote Industries Limited, Aliko Dangote was quoted by Reuters as saying that lenders would commit about $3.15bn, with the World Bank’s private sector arm offering $150m, adding that he was investing more than 60 per cent from his personal money. READ ALSO: Saraki deliberately slowed down our progress – FG  “We’ll end up spending between $12bn and $14bn. The funding is going to come back by equity, commercial financial institution loans, export credit agencies and developmental banks. Hopefully, we are going to finish mechanical (construction) by next yr and products will begin popping out in the first quarter of 2020,” Dangote added.