Dangote Group has announced that its refinery would be commissioned by the end of first half in 2021.

The Group Executive Director, Dangote Group, Devakumar Edwin, explained that when commissioned, the facility would meet 100% need of the country and export balance.

When production starts, the refinery will be able to process 650,000 barrels of crude oil per day into refined petroleum products. This will help Nigeria become an oil refining country and oil exporter as the country’s refineries are in dilapidated state. The capacity of the Dangote Refinery would eliminate fuel import from other regions into Nigeria.

No crude-for-fuel swap deal: Edwin also stated that the Dangote refinery would not be involved in NNPC’s (Nigerian National Petroleum Corporation) crude-for-fuel swap deal.

“We are going to buy the crude just at the export price and will sell our products at the import price, the crude swap is operating only for the importers of the product.”

Pipeline out of delivery routes: In a previous report by Nairametrics, Edwin disclosed that the plan is to transport the refined petroleum products by road and through the seaports when it begins operation. He also stated that the fuel produced by Dangote Refinery would be delivered by shuttle boats to Warri and Calabar while other deliveries would go in trucks.

Dangote eyes European and American markets: The company also has its sight on other markets which include Europe and Latin America. These markets would have diesel, gasoline and other fuels delivered to them. The diesel is expected to meet winter standard in Europe, with high quality that will make it suited for any market.

[b]Dangote gunning for European refineries’ market: [/b]The Dangote refinery will be a problem for European refinery because they will be competing in the same market in West Africa. Most of the gasoline consumed in West Africa is supplied by European refinery, and with African leaders supporting the operation of Dangote Refinery, the status quo is expected to change.


https://nairametrics.com/2019/10/31/dangote-refinery-rules-out-2020-as-refinery-gets-new-date/

Haaaaaaaa

the Nigerian factor has started taking effect gradually!
i wouldn't be surprised if this postponement was deliberate just to allow the "lords of subsidy" loot more before handing it over to Dangote

Shifting of Goal post.

Thank God for this project.

I keep saying it. Dangote is the front for the cabal milking Nigeria dry.
Just imagine buying crude at export price and selling at import price to a local market. What then is the point of the dollar breaks CBN have been giving the guy.
In other words, dangote refinery is another euphemism for removal of subsidy

QuotaSystem:


How did you conclude on the currency to be used for payment?

Besides what price do you think his major competitors are selling their refined oil?

Don't forget that for him to survive and excel as a global player in the industry, he must remain competitive.

theenchanter:
pls, how much do u want him to sell it? Free of charge?

The landing cost of fuel is N133. If he is selling at that amount or close to, then what difference does it make to the Nigerian market. Nigeria is an oil producing nation, so selling for local demand at international price should not arise except there's a plan to exploit the masses.
Quotasystem, read this so as to know that charging international price for locally refined crude is international 419. Also read porka's analyses, he's on point.

AmazingELixir:


Landing cost is inclusive of the handling, shipping and duties besides the product cost itself, so dangote's refined product price to a greater extent eliminates those cost components....so we are expecting a relatively cheaper price locally safe for forex fluctuation.

If dangote has been getting import waivers, forex concessions and other freebies from govt in the name of building a never ending refinery, then i think getting crude cheaper should be mincemeat for him except he's just up to a greedy game. We all know why our refineries have stopped producing totally is because of dangote's incoming refinery. Do you mean if tables were turned and the refineries start producing, they would sell to the Nigerian market at international prices? even Saudi oil company doesn't sell fuel at international prices in its local market. Be careful what you're defending cause you will also be a part of the receiver.
@grandstar, I daresay dangote has made a profit off Nigeria building the refineries already. Homemade products should be cheaper than imported ones, that's primary school knowledge. Dangote in cohorts with govt is planning a robbery of Nigerians like he did with cement during OBJ's time.

kelvinUchiha:


You sabi book but look at it from this angle.
Some Government guys like babangida have this same refinery abroad and are buying our crude oil and refining it abroad and selling it back to us and government is paying heavily for the price to still be stable. If we have it in Nigeria the money will be used to do other things for Nigerians even if they buy it at 133. Do you know how much money will remain inside this country and boost our gdp when we start exporting to Ghana and other African countries

What difference does it make it babangida has a refinery outside and sells at international prices while dangote has his here and sells at the same international price? Dangote may even end up being the better for it since he does not have to worry abt logistics on the high seas. You and quotasystem keep making allusion to money being saved by exporting to African countries but don't realise even Benin does not buy dangote cement and dangote will compete internationally not like the monopoly he's abt to enjoy on the local front.

GOOOGLE504:

Dangote has become the John D. Rockefeller of our time and there's nothing any of us can do abt it, especially not by running analysis on SM

You wish. He ain't no Rockefeller. Rockefeller was not depending on govt patronage for business. He might have been a ruthless businessman and a cutthroat. But he was not a govt crony

A bit disappointing, but not unusual for mega-projects of this magnitude.

This is going to have a huge positive impact on our Naira exchange rate, because the millions of dollars wasted importing fuel daily will be saved, significantly easing dollar demand with the consequent effect on prices.

Aliko Dangote must also be made to repatriate a good part of his forex (earned from exporting refined products) back to the country (as current export guidelines require) as this will further boost our reserves and economic standing.

An exciting development for Nigeria worth looking forward to.

Gigantic projects often have some unexpected outlays that causes extension in completion time.

Agboriotejoye:
I keep saying it. Dangote is the front for the cabal milking Nigeria dry.
Just imagine buying crude at export price and selling at import price to a local market. What then is the point of the dollar breaks CBN have been giving the guy.
In other words, dangote refinery is another euphemism for removal of subsidy

pls, how much do u want him to sell it? Free of charge?

Agboriotejoye:
I keep saying it. Dangote is the front for the cabal milking Nigeria dry.
Just imagine buying crude at export price and selling at import price to a local market. What then is the point of the dollar breaks CBN have been giving the guy.
In other words, dangote refinery is another euphemism for removal of subsidy

How did you conclude on the currency to be used for payment?

Besides what price do you think his major competitors are selling their refined oil?

Don't forget that for him to survive and excel as a global player in the industry, he must remain competitive.

Modified:

Agboriotejoye:

The landing cost of fuel is N133. If he is selling at that amount or close to, then what difference does it make to the Nigerian market. Nigeria is an oil producing nation, so selling for local demand at international price should not arise except there's a plan to exploit the masses.

Let us break this down:

Dangote will not sell to Nigeria in Dollars unlike if we were importing refined fuel. That is KEY. Why?

It is because Nigeria will benefit greatly from eliminating a huge daily demand for USD to import fuel. This fall in demand has a direct effect on the exchange rate which will fall as a result of a fall in demand for $. Additionally Dangote will be forced to repatriate some of his USD income from exports, which will also boost our foreign reserves. More USD in the reserves means more USD available to satisfy our daily forex bill and avoid price spikes because the CBN will be better positioned to intervene accordingly.

Now why can't Dangote just sell to us at a reduced price? It is also simple.

For Dangote to survive in the global oil industry, it means he must then be able to compete favorably with other international refineries. That would be impossible if he is subsidizing prices for specific countries, because the costs of input (crude) and processing (refining) are the same or similar to his other competitors across the world. He must therefore sell at global prices, Nigeria not excluded (do not forget he is exporting the excess refined fuel to other countries) so as to remain profitable to his investors and keep him from shutting down after a few months of operation.

Yes we are an oil producing nation, but we are not 'dashing' the crude to Dangote to process for us. He is buying it from us at global prices too, and adding value (refining) at a cost he must recover and make some profit on.

This is rather simplified but hopefully it puts things in clearer perspective.

nwakibie3:
Dangote Group has announced that its refinery would be commissioned by the end of first half in 2021.

The Group Executive Director, Dangote Group, Devakumar Edwin, explained that when commissioned, the facility would meet 100% need of the country and export balance.

When production starts, the refinery will be able to process 650,000 barrels of crude oil per day into refined petroleum products. This will help Nigeria become an oil refining country and oil exporter as the country’s refineries are in dilapidated state. The capacity of the Dangote Refinery would eliminate fuel import from other regions into Nigeria.

No crude-for-fuel swap deal: Edwin also stated that the Dangote refinery would not be involved in NNPC’s (Nigerian National Petroleum Corporation) crude-for-fuel swap deal.

“We are going to buy the crude just at the export price and will sell our products at the import price, the crude swap is operating only for the importers of the product.”

Pipeline out of delivery routes: In a previous report by Nairametrics, Edwin disclosed that the plan is to transport the refined petroleum products by road and through the seaports when it begins operation. He also stated that the fuel produced by Dangote Refinery would be delivered by shuttle boats to Warri and Calabar while other deliveries would go in trucks.

Dangote eyes European and American markets: The company also has its sight on other markets which include Europe and Latin America. These markets would have diesel, gasoline and other fuels delivered to them. The diesel is expected to meet winter standard in Europe, with high quality that will make it suited for any market.

[b]Dangote gunning for European refineries’ market: [/b]The Dangote refinery will be a problem for European refinery because they will be competing in the same market in West Africa. Most of the gasoline consumed in West Africa is supplied by European refinery, and with African leaders supporting the operation of Dangote Refinery, the status quo is expected to change.

Cc myndd44
Cc lalasticlala
Cc Seun

https://nairametrics.com/2019/10/31/dangote-refinery-rules-out-2020-as-refinery-gets-new-date/

This project will make Aliko 3 times richer than he currently is. 650,000 barrels a day is not beans.

Okay

They should Jejely sell this country called Nigeria to this man called Dangote.

He can manage it to an extent.....The number of Nigerians he do Employ annually is/are always on high side.

If you need Pure Original HOney...call. or whatsapp 0 8-101-66-67-71

.Haa..God abeg.

Let evil spirit of setback holding Nigeria to Ransome, never ever withhold Dangote o.

Amen.

Dangote and his cabal keep enjoying the country.

Continue posting... by the time it is finally commissioned, maybe more than half his export target destinations would have gone electric.

What's tha business?

Alhaji Putin!!

Scamming Nigeria to eternity!! Lol

There it goes.
Deepwater predicted this months ago.

Dangote doesn't want Buhari to commission the project, he fears Buhari's ineptitude might rub off on the refinery operations after the marvelous job he has done with Port Harcourt, Warri and Kaduna refineries.

By the year he officially commissions it, all his potential targets would have gone electric

Hmmm

Dangote can do better as a president

theenchanter:
pls, how much do u want him to sell it? Free of charge?

You have time.

God bless Nigeria

Hmmmm

Thank God he didn't say the Project has been Suspended

So that means Dangote will be enjoying fuel subsidy alone. Since there is no crude swap. Which means he will sell at the price he wish you sell.

More money for the rich man

Expect 230 per litre

Ok ooo!!!





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