Economy | Oil & Gas

Dangote Refinery to Save Nigeria from Dirty Fuels With Euro V Specification

Oct 31, 2018   •   by   •   Source: Proshare   •   eye-icon 5158 views

Wednesday, October 31, 2018 10:05 AM /Dangote


DangoteOil Refinery Company (DORC) says the 650,000 barrels per day refinery has beendesigned to process a variety of light and medium grades of crude and produceextremely clean fuels that meet Euro V specification. 

Sulphurin petroleum fuels results in vehicle exhaust emissions that have negativeimpact on health and environment. Nigeria has continued to remain a home forfuels with very high sulphur contents (dirty fuels), and the presumed ban onsuch products happens not to be having any effect. 

Speakingon Promoting Efficiency & Clean Fuels in African Refining andPetrochemicals Market at the Oil Trading and Logistics (OTL) conference inLagos on Tuesday, Dangote’s Group Executive Director, Devakumar Edwin,said 
Dangote Refinery is investing in most advanced units to produce Euro V fuel dueto help Nigeria meet the European Standard of gasoline.

Edwin,who was represented by Director Business Strategy & Optimization, DangoteRefinery, Mr. Srinivas Rachakonda said that the construction of the Refinerywill provide thousands of direct and indirect jobs and add value to theNigeria’s economic development. 

Henoted that the Refinery will lead to significant skills transfer and technologyacquisition opportunities in the country. 

Hesaid the Group has embarked on a landmark integrated Refinery and Petrochemicalproject, regarded as the largest industrial complex in the history of Africa,which is expected to take Nigeria to new heights through transformation of theeconomy. 

According to him, the Refinery will ensurethat the security of local supply of petroleum products is guaranteed as wellas the availability of petrochemical feedstock (Poly-propylene &Polyethylene), which will be enough for the Nigerian market as well as theneighboring countries. In addition to Polypropylene Polyethylene, the Refinerywill also produce Carbon Black feedstock and Sulphur.  

With a fast-growing population and poorinfrastructure, he said the refinery will also reposition Nigeria as anattractive investment destination and a major industrial hub in Africa. 

He disclosed that the company has alsoinvested in the East West Offshore Gas Gathering System (EWOGGS) project, whichis expected to unlock significant gas supply and help to reduce gas flaring inNigeria. The first phase is expected to deliver gas for the use of DangoteIndustries, including the proposed fertiliser plant in the refinery complex,and other identified industrial and power plant users. 

Speaking during the session, formerExecutive Secretary of the Petroleum Product Pricing Regulatory Agency (PPPRA),Reginald Stanly, said Dangote Refinery is going to be a game changer for theentire African downstream industry. 

He condemned the continuous importation ofdirty fuel into the country. “Emission is the highest killer today in Nigeria.I commend Dangote Refinery for its decision to produce Euro V specification ofgasoline. Dumping of toxic fuel in the country is not acceptable, the earlierthey stop it, the better for us,” he added. 

He urged Major Oil Marketers to retooltheir strategies to remain in business when Dangote refinery finally comes onstream. 

 Giving his welcome address,Chairman, OTL Africa Downstream, Mr. Emeka Akabogu, said recent markettendencies have shown appetite for some categories of investment in thedownstream value chain. 

Akabogu noted that there have beenconsiderable investments in retail outlet development, marine logisticsplatforms and storage facilities across the country, while several refineryprojects that aim to balance the discrepancy caused by inadequate refiningcapacity on the continent are currently underway. 

He said other emerging developments,issues bordering on regulation of the industry and independence of theregulators themselves have also received the attention of stakeholders. 

However, he added that policy developmentand implementation have not kept pace with the urgency of industry needs andthe appetite of market operators. 

Speaking on the impact of the conference,Akabogu stated: “This year’s event will further empower African oil and gascompanies to harness the economic potential of the downstream sector in areasranging from crude oil value addition to refining, to development of criticalsupply infrastructure across African States. Issues to be discussed includeprospects for refining in Africa, finance for downstream trading andinfrastructure projects, regional cooperation, mergers, takeovers and lotsmore. We will also see discussions on the sector’s disruptive influences, therising profile and application of Liquefied Petroleum Gas (LPG) across thecontinent, as well as renewable energy”.

 Proshare Nigeria Pvt. Ltd.

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