According to the 10th edition of the Organization of Petroleum Exporting Countries’s (OPEC) World Oil Outlook (WOO), Nigeria’s $17b Dangote refinery is expected to refine as much as 650,000b/d crude oil per day once it is operation by 2019, Africa News reported. OPEC) is looking at Dangote refinery to drive refinery capacity expansion in Africa, by 2020.
According to the OPEC, the projected investments in Africa through to 2021 are seen as around $20 billion. And a large share of this is attributed to two projects, Dangote in Nigeria and the Sanangol’s Lobito project in Angola, informed Med Africa.
OPEC said: “Of several possible refining projects, one that may materialize in the medium-term is the grassroots Dangote refinery and an associated greenfield fertilizer plant in Lagos. If built, this refinery would be Nigeria’s first privately owned and operated refinery.” OPEC added that refining capacity is on the increase in developing countries, as against the developed world, with the Asia-Pacific taking the lead.However, capacity rationalization remains a long-term requirement, with some 2.5mb/d of net refinery closures expected by 2040, an estimated 4mb/d by 2025, and a further 5mb/d are indicated as needed by 2040 if refining regions are to maintain utilization rates of at least 80%.