Vice President ,Prof Femi Osinbajo, on Saturday raised hope that by the first quarter of 2019 the
nation's refining capacity would be sufficient for the domestic market and
export.
Osinbajo said this at during a facility tour to
Dangote Refinery situated at the Lagos Free Trade Zone that it would benefit Nigerians
at the completion of Dangote refinery projects
Osinbanjo, was
optimistic that the project would also boost gas supply to power plants through
the three billion standard cubic feet per day gas pipeline.
He said the facility would buoy export earnings
after meeting the nation's current requirement of two billion standard cubit feet
per day.
According to
him, the gas pipeline, slated for commissioning in 2018, would take off from
Bonny through Ogedegbe to Olokola and onward to Lekki.
He added that the line would hook up with
Escravos-Lagos pipeline and the West African Gas Pipeline.
``The project is an incredible industrial
undertaking and possibly the largest investment ambitious in the continent
today. I think it is inspiring.
``The refinery would start production in the first quarter of 2019. The subsea gas pipeline, which is an important and strategic project is meant to take off in 2018," he said.
The vice president described it as the highest investment in Africa and the biggest of its type in the world with a 650,000 barrels per day refining capacity.
The facility also includes a three million tonnes per year world single largest fertilizer plant; petrochemical plant; 400 Mega Watts power plant; and 1,100 kilometers of pipeline to handle three billion standard cubic feet per day.
Group Executive Director, Dangote Group, Devakumar
Edwin, said the plant's basic engineering is currently at 98 per cent
completion while the construction is 10 per cent in progress.
He estimated that the project would aid the country with about $7.5 billion
forex savings on import substitution; generate $5 billion forex earnings from
savings and another $5.5 billion export earnings.
The plant, according to him, will generate over 100,000 employment opportunities and revive over 11,000 filling stations that have been shut down due to shortage of products.
He said the project was designed to process largely
variety of crudes including all African crudes, a range of Middle Eastern
crudes and U.S crudes.
Chairman,
Dangote Group, Alhaji Aliko Dangote, said that the current effect of foreign
exchange depreciation has taken its toll on the project which was earlier
estimated at N2.8 trillion has now doubled to N4.8 trillion.
Dangote said that this was based on the new exchange
rate. he is committed to the multi-billion dollar project to aid the nation's
economy.
``We are putting in 65 million cubic meters of sand
and that was why we brought in three dredgers, two of which are the biggest in
the world.
``This place is eight times the size of
Victorial Island," he said.
On allegations of conflict with the host community, he said there are no issues, noting that the past issues were between two communities and the state government.
``We did not buy the land from communities, we bought our land (swamp) at $100 million and the filling up the swamp to become solid land is costing us another $420 million.
``The petrochemical is 13 times of Eleme petrochemical. It is 10 times of
Nafcon and therefore the largest fertiliser plant in Africa,"he said.
He said the holding company, Dangote Industries Limited, which is different from Dangote Refinery, took an initial loan for the project that has accrued an interest of $173 million.
He said that contrary to speculations, the company
has not gotten substantial forex from the Central Bank of Nigeria.
Dangote stated the impact of the new forex policy on
the project saying that ``we lost almost N50 billion to new forex regime.
`` Every single money we make in the country is
ploughed back into the economy. I dont have a single block outside Nigeria, I
am a proud Nigeria and i believe in this country,’’ he said.
He urged government to sincerely pursue the
diversification of the economy, he said that projects such as these are needed
to wean Nigeria from relying solely on oil as well as optimise government
revenue.
According to him, the best way of diversification
for Nigeria was agriculture and out fertelizer plant is in line with that goal.
`` By the time we finish out gas pipeline, it can
generate about 12,000MW and we can export to other African countries.
``We would have the capacity to store four billion
litres of products, and can load 2,680 trucks per day," he said.
Dangote noted that the project would crash the price
of Premium Motor Spirit (PMS) because the product is refined in-country, and
will therefore save some costs incurred in the import market.
`` Nigeria will save $7.5b yearly from the project
when completed.
``We have lost N50b to new forex policy,’’NAN quotes
Dangote saying.
(NAN0
YO/FAA
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