Nigeria's Dangote refinery to rely on ports, roads for fuel deliveries

Published 29/10/2019, 17:56
© Reuters. Nigeria's Dangote refinery to rely on ports, roads for fuel deliveries

By Libby George

LAGOS, Oct 29 (Reuters) - Africa's largest oil refinery will

deliver its fuels to Nigerian consumers via roads and sea ports

and will effectively replace all of Nigeria's fuel imports once

fully operational, a company executive said on Tuesday.

The 650,000 barrel per day Dangote oil refinery is under

construction in Lagos, the biggest city in the most

fuel-consuming nation in the region.

But congested ports and dilapidated roads led some to expect

that the company would build a pipeline or other method of

getting its fuel to consumers.

Dangote Group Executive Director Devakumar Edwin told an OTL

(Oil Trading and Logistics) Expo in Lagos that fuels would go

via "shuttle" boats to Nigerian cities Warri and Calabar, and

that other deliveries would go in trucks.

Dangote itself is fixing and expanding one of the current

roads to Lekki - an area adjacent to Lagos's financial and

business district - Edwin said, while the Lagos state government

will build another toll road to aid shipments.

"That's going to reduce a lot of congestion," Edwin said of

their plans.

He said the refinery would virtually eliminate fuel imports

from other regions, adding "those who are importing today...they

can buy from our refinery".

The company previously told Reuters that the refinery's

mechanical completion was delayed until 2020, though industry

sources told Reuters last year that fuel output was unlikely

before 2022.

The refinery is also constructing facilities that will allow

it to export its diesel, gasoline and other fuels to markets

including Europe and Latin America aboard vessels as large as

suezmax tankers.

It is also designed to be able to produce diesel that meets

European winter standards, and will be high quality enough to go

to any market.

"We can export the product all over the world. So there is

no need for us to (blindly) compete with the local production,"

Edwin said.

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