With most of its needed equipment on ground, an analyst at Renaissance Capital, Temilade Adurogba, has declared that Dangote Refinery is still on course to start operations in 2020 despite some crucial challenges it faces, including inadequate foreign exchange.
Aduroja, a sub-Saharan Africa analyst at the research firm said that the progress shown by the company over the past year is “significant”, while noting that “it might start in 2020 but the full operation is in 2021.”
The $12 billion refinery is also expected to increase the country’s net exports despite the diversion of 650,000 barrels per day to the refinery.
Aduroja said that “I think Nigeria net exports would increase based on that, although the crude might decrease because some of it would be going to the refinery but Dangote is still going to export refined fuel.”
Also, she allayed the fear of lower crude exports and said that “Nigeria’s OPEC cut is at 1.8 milllion barrels per day so we possibly might not be producing at full capacity. Also, Egina coming at the end of the year, Bonga is coming in a few years, so obviously Nigeria is going to continue producing even though some go to the refinery.”
She then added that the Dangote Refinery might import crude and does not have to get all its crude locally.
Oil surges 2.5 percent, soothes cyber nerves
Nigerian crude unattractive as buyers choose other alternatives
Nigeria's state oil firm eyes capital market to fund at least 8 new projects
Demand side of electricity on the backburner despite its importance
Experts advise govt to create special fund for oil exploration
Russia's energy minister sees oil prices stabilizing in first-half 2019
Oil rises for a fifth day as equities stabilise
Nigerians consumed 53 million liters/day in 2018-PPPRA
Oil prices rise on potential lengthy OPEC-led oil supply curbs
State-owned Ibom Power's 150mw waste away on poor evacuation infrastructure
Frontpage February 13, 2019