The 650,000 barrels per day Dangote Refinery has been projected to hit 50% capacity utilisation by 2020. The capacity utilization of the Lagos-based plant, scheduled to come on stream in 2019, would also rise to 90% by 2030, Vanguard reports.
PriceWaterCoopers, in its latest report, Modular refineries: Merits and challenges stated that the feat would make West Africa to become a great refining hub in Africa. The report, which puts existing refineries at 20% utilization, stated that Nigeria and West Africa have a deficit of 113,000 barrels per day (bpd).
In its previous report, the organisation had indicated that modular refineries would also assist to bridge the supply gap of 53,000 bpd, (approximately 8.5 million litres daily) in Nigeria. It had stated that by 2026, Nigeria’s exports to the region would exceed 130,000 bpd (approximately 21 million litres daily), reducing the region’s imports from US and Europe by approximately 80%.
PWC had indicated that the current supply gap within the country and region creates an opportunity, not just for conventional refineries such as the Dangote Refinery, but also for modular refineries which will be set up primarily to meet domestic demand. The organisation stated that another critical assumption is that the modular refineries’ yield will be limited to fuel oil and diesel as the lightest hydrocarbon produced.