Dangote group expects $9 bln refinery to start by 2017

 

A new $9 billion oil refinery producing 500,000 barrels per day being developed by Africa's richest man, Aliko Dangote, is expected to come onstream in Nigeria by 2017, a senior Dangote Group official said Tuesday.

The refinery, to be located in Lagos, will cut reliance on international markets for Africa's largest oil producer, which imports more than 80 percent of its fuel needs.

The lack of sufficient refining capacity is a major handicap in Africa's biggest economy.

"By the third quarter of 2017, we expect to be looking at commissioning," Mansur Ahmed, Dangote Industries Ltd's executive director of stakeholder management and corporate communications, told Reuters at an African refiners conference in Cape Town.

The refinery is being designed to process Nigerian crude mix and produce products conforming to Euro V fuel specifications, as fuel demands across the continent are forecast to rise rapidly with many countries enjoying strong economic growth.

Poor infrastructure, competitive global markets and financial constraints have traditionally held back Africa's refining capacity, while fuel subsidies in Nigeria are also an issue, said Ahmed, who spoke on behalf of Aliko Dangote.