Dangote Oil Refinery Company (Dangote) is constructing an integrated refinery and petrochemical complex in the Lekki Free Zone near Lagos, Nigeria. The refinery is expected to be the world’s biggest single-train facility, upon completion in 2019.
Estimated to cost $9bn, the refinery will produce Euro-V quality gasoline and diesel, as well as jet fuel and polypropylene. The project is expected to generate 9,500 direct and 25,000 indirect jobs.
Nigeria is estimated to hold approximately 37 billion barrels of proven oil reserves, which is the second biggest in Africa. The country, however, imports majority of its refined products due to lack of domestic refining capacity.
The new refinery will double Nigeria’s refining capacity and help in meeting the increasing demand for fuels, while providing cost savings.
Site and location details of Dangote oil refinery
The refinery site covers an area of 2,635ha on the Lekki Free Zone near the Lekki Lagoon. The location will enable easy transshipment of refined petroleum products to the international markets.
Processing units at Nigeria’s new refinery
The processing facilities at the refinery include a crude distillation unit (CDU) and associated facilities, a mild hydrocracking (MHC) unit, residual fluid catalytic cracking (RFCC), naphtha hydrotreater and RFCC gasoline hydrodesulfurisation (HDS) unit, as well as alkylation units.
Sulphur recovery and hydrogen generation facilities and a polypropylene unit are also part of the refinery. The hydrogen generation complex will consist of two steam methane reformer (SMR) units. It will generate 200,000Nm³/h of hydrogen and steam, which will be used to produce sulphur-free fuels.
Additional processing units include a set of units supplied by DuPont to produce clean fuels. These units include the STRATCO® alkylation unit and the MECS® sulphuric acid regeneration (SAR) unit. The MECS® DynaWave® sulphur recovery unit and BELCO® EDV® fluid catalytic cracking unit are also included.
Infrastructure and site facilities
The refinery will feature infrastructure facilities such as a pipeline system, access roads, tank storage facilities, and crude and product-handling facilities. A marine terminal, including a breakwater, jetty and harbour, is also part of the refinery.
In addition, an administrative building, guardhouses, fire station and pump stations will be part of the facility.
The refinery complex will also include a fertiliser plant, which will utilise the by-products from the refinery as raw materials.
Dangote oil refinery products
The Dangote refinery will have an annual refining capacity of 10.4 million tonnes (Mt) of gasoline, in addition to 4.6Mt of diesel and 4Mt of jet fuel.
It will also produce 0.69Mt of polypropylene, 0.24Mt of propane, 32,000t of sulphur and 0.5Mt of carbon black feed.
Funding for the new oil refinery
The Dangote oil refinery is being constructed through $3bn equity and $6bn loan capital. A consortium of local and international banks led by Standard Chartered Bank is providing a $3.3bn loan facility.
The United States Trade and Development Agency is offering a N251.3bn ($0.997m) training grant to develop human resources for operating the refinery.
Engineers India was awarded the engineering, construction and procurement contract for the refinery.
UOP was contracted to supply catalyst regeneration and dryer regeneration control systems, column trays, heat exchanger tubes, a modular CCR unit, and catalyst coolers among other equipment.
C&I Leasing is responsible for providing transportation and installation services for mooring systems and subsea pipelines of the refinery.
Hang Xiao Steel Structure Company was awarded a $112m contract to supply steel structure for the refinery.
Jan De Nul Group was responsible for carrying out land reclamation works. MAN Diesel & Turbo is supplying two compressor trains, while Air Liquide Engineering & Construction is supplying the SMR units.
Other suppliers involved in the project are Fabtech (18 columns), Schneider Electric (process automation systems), SOFEC (Catenary Anchor Leg Mooring bouys) and WABAG (raw water treatment plant).