Project Profile
Location: Lekki Free Trade Zone near Lagos, Nigeria
Value: US$18 billion
Area: 2,200 hectares (22 sq km)
Refinery Capacity: 650,000 bpd (crude)
Petrochemical Capacity: 780,000 tonnes per year (polypropylene), 500,000 tpa (polyethylene)
Fertiliser plant: 3.0 mmtpa of urea - original plan was for two trains (start-up in June, 2018)
Start-up Year: December 2019
Dangote Refinery is an integrated oil refining and petrochemical complex currently under construction. The refinery will be Nigeria's largest at 650,000bpd capacity, and is being developed by Aliko Dangote's industrial conglomerate, active in construction, finance and trade in Nigeria and overseas. The large scale and private nature of the new refinery marks it as a major new type of venture in the African downstream oil market. Some of the momentum behind the new plant comes from a slow-moving process among Nigeria's other (state-controlled) oil refineries to expand capacity and improve efficiency. Nigeria wants to prioritise a greater degree of self-reliance in refined fuel supply, hence the motive for all refining upgrade and expansion projects is essentially import substitution. Construction at this very large-scale plant is under way with projected completion in 2020. Source of crude oil will be Nigerian production. Cost of development estimated within range US$12-18billion. DF June 2018
The Dangote refinery will have the largest subsea pipeline infrastructure in the world with capacity to handle three million cubic metres of gas per year. Significant progress has been reported since the securing of a record-breaking multi-billion dollar loan in 2013. Dangote Group officially entered an agreement with Engineers India Ltd. (EIL) for project management consultancy (PMC) and engineering, procurement, and construction management (EPCM) services for the refinery and polypropylene plants in the Lekki Free Trade Zone.
The refinery project will include a crude distillation unit (CDU), single-train residual fluid catalytic cracking unit (FCCU), diesel hydrotreating unit, continuous catalyst regeneration unit, alkylation unit, polypropylene unit, as well as utilities and off sites, including a captive power plant and associated infrastructure. A single-point mooring terminal for crude oil and product handling also would be integrated with the refinery.
Operators:
Dangote Oil Refinery Company Limited (DORC): Operator with 100% interest
Contractors:
DuPont Clean Technologies Limited: provision of technology licensing, design and technical equipment.
Man Diesel and Turbo SE, Augsburg, Germany: supply of two axial compressor trains driven by 30MW turbines to the fluid catalytic cracking plant. Provision of equipment commissioning services.
Honeywell UOP LLC, Des Plaines, Illinois, USA: supply of technology and catalysts.
Hyundai Heavy Industries: US$58 million contract for 15 x 75,000-cubic-metre LPG storage tanks (February, 2018)
China Harbour Engineering and China Offshore Engineering: Installation of a marine system for the supply of crude feedstock to the refinery (February, 2018)
- 9 subsea pipelines with total length of around 100 km, 5 single-point moorings (SPMs) and associated facilities.
Mammoet Holding BV: Transporting, lifting, and installation services (January, 2018)
Air Liquide Engineering & Construction: Supply of two hydrogen production steam methane reformer (SMR) units (June, 2017)
Engineers India Ltd. (EIL): PMC and EPCM for the grassroots refinery and polypropylene plant
UOP LLC: Provision of process technology, catalysts and proprietary equipment. UOP technologies at this facility will include:
- The UOP Resid Fluid Catalytic Cracking process to produce transportation fuels from crude oil. It will also supply propylene, which will be used as a feedstock for polypropylene.
- The CCR Platforming™ process to produce high-octane gasoline blending components.
- The Unicracking™ process to produce diesel.
- The Penex™ process to produce high-octane gasoline.
- The crude distillation unit (CDU) design, which will be provided by UOP's alliance partner, Process Consulting Services
Saipem: Construction of the biggest fertilizer project in Africa (2,200 metric tons per day for Ammonia and 3,850 metric tons per train per day of Urea) (July, 2011)