Dangote industries, the crude oil refinery built in Lagos is a threat to refineries in Europe, the citizens of Nigeria relies mostly for the imports of fuel, a global provider of energy and commodities information has record.
The Editorial Director, Strategic Oil Markets Development, S&P Global Platts, Andrew Bonington, said at the S&P Global Platts Lagos Oil & Energy Forum on Thursday that the start of operations at the Dangote refinery would likely lead to the closure of some European refineries.
He told our correspondent on the sidelines of the event, “In Africa, the Dangote refinery is a huge story; one of the biggest refineries in the world being built in Nigeria, likely to supply most of or all of Nigeria’s consumption. That clearly has an impact on European refineries, because they export to Nigeria.
“It is impossible for me to say exactly what the impact will be, but it is not a good thing for European refineries that Dangote refinery is being built.”
According to Bonington, Europe is the biggest supplier of petroleum products to Nigeria, with about 75 per cent of petrol consumed in the country imported from the continent.
Last week, the President, Dangote Industries Limited, Aliko Dangote, said he had arranged more than $4.5bn in debt financing for his refinery project and aimed to start production in early 2020.
Dangote, Africa’s richest man, is building a refinery with a capacity of 650,000 barrels per day to help reduce Nigeria’s dependence on imported petroleum products.
He was quoted by Reuters as saying that lenders would commit about $3.15bn, with the World Bank’s private sector arm providing $150m, adding that he was investing more than 60 per cent from his own cash flow.