Petroleum products from our refinery to be on sale from October 2021

Dangote Group has revealed that refined petroleum products from its refinery, currently under construction, will be ready for sale by the last quarter of 2021.

The Executive Director, Strategy, Capital Projects and Portfolio Development, Dangote Group, Mr. Devakumar Edwin, told journalists in Lagos that the refinery has reached 80 percent completion, adding that engineering and construction were 100 percent over while procurement was 98 percent ready.

He said: “If you look at the overall percentage completion we are at 80 percent. But that overall includes engineering and design, which is 100 percent over. Procurement is about 98 percent over. So, it covers various aspects. But the core activity which is going on today is construction.

“So, if you look at exclusive construction, we have finished 60 percent of construction.

But overall, it is 80 at percent level. The progress is going reasonably well.

“We had the impact of coronavirus because many of the countries where our equipment are being manufactured were affected.

“So, now, we hope to complete everything – all the assembling by the middle of next year. Then, we will start the commissioning process. Middle of next year, we start the commissioning process, and it’s a huge refinery, the commissioning process may take three to four months.

“And then with the start of products coming into the market. So, by last quarter next year, we should have our products coming into the market.”

On the impact of the refinery on the price of petrol in the country, he said the basic economic principle of demand and supply would determine that.

Edwin explained that the increase in refining capacity in the country resulting in the rise in supply of petroleum products will bring the price down as was the case in the cement subsector in the country.

“This is a basic economic principle: demand and supply. When the demand exceeds supply, the price will go up. When the supply exceeds demand, the price will come down.

“Yes, it (petrol price) will not crash in one day but with a period of time it will come down to almost half the price currently,” he added.

Edwin, however, stated that finished products from the Dangote Fertiliser Plant will be in the market this month.

“And talking of fertiliser, actually the commissioning has started. I hope by the grace of God, we will have the product coming into the market in this month,” he added.

According to him, 20,000 people are working in the refinery project and the group plans to employ as many as over 240, 000 people.