Home » Africa’s richest man Aliko Dangote’s refinery to kickstart operations in Q3 2022

Africa’s richest man Aliko Dangote’s refinery to kickstart operations in Q3 2022

by Omokolade Ajayi

The Dangote Petroleum Refinery, an integrated refinery project owned by Africa’s richest man Aliko Dangote, is scheduled to kickstart crude oil-refining and -processing operations by the end of Q3 2022.

According to Bloomberg, Dangote, a Nigerian billionaire worth more than $20.4 billion as of the time of writing, revealed that mechanical work on the refinery has already been completed, and the plant will commence full production possibly by the end of 2022, or the beginning of 2023.

The billionaire added that the refinery will start with a processing capacity of 540,000 barrels per day in the first phase of its operational stage, and subsequently move up to 650,000 barrels per day.

The Dangote Group believes that the pipeline Infrastructure at the refinery, which is designed to process Nigerian crude, is the largest anywhere in the world, with 1,100 kilometers to handle 3 billion standard cubic feet of gas per day. 

The coming on stream of the $19-billion refinery is expected to meet 100 percent of Nigeria’s demands for all refined products and also have a surplus of each of these products for export. 

In addition, the multibillion-dollar project will create a market for $11 billion per annum of Nigerian crude.

The project has been slowed for several reasons, such as access to forex, the ailing economy and more recently the COVID-19 pandemic which disrupted supply chains leading to delayed transport of some of the refinery’s equipment.

The news comes nearly 10 months after a $2.5-billion fertilizer plant linked to the billionaire started operations, with a production capacity of 3 million metric tonnes per annum of urea fertilizer.

Since the year began, Dangote’s net worth has increased by more than $1.31 billion, as investors priced in the impact of the planned share buyback program of his cement company, Dangote Cement.

Under the share buyback program, the billionaire revealed plans to buy back one percent of its stake for N39.1 billion ($112.75 million) on the open market.

Under the arrangement, Dangote Cement will buy up to 170,003,074 fully paid-up ordinary shares, representing one percent of the company’s currently issued shares.

The cement maker will also acquire 40,200,000 shares held as treasury shares. 

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