Dangote refinery to deploy shuttle vessels to evacuate product


Dangote Group has revealed that it will deploy shuttle vessels to get products into markets across the region.

The company also confirmed that it was going to construct a concrete road linking the refinery to Epe, in Lagos. The road is expected to serve as an alternative to a tolled road the Lagos State Government has proposed to build linking the Refinery to the major Lekki trunk road.

The Group Executive Director (Capital Projects & Portfolio Development), Dangote Industries Limited, Mr. Edwin Devakumar revealed this during a session focused on the Dangote Refinery at the 2019 OTL Africa Downstream Week.

Edwin said the refinery would utilize shuttle vessels which may be owned by the company or chartered from ship-owners to evacuate 75% of the refinery’s products while the rest will be moved by road.

However, he hinted that Dangote was trying to divest from transportation following numerous challenges it faced as the largest trucking company in the West and Central Africa region.

Edwin who was responding to questions during an interactive session on the ‘Impact of the Dangote Refinery on the West African Petroleum Products Markets’, also dispelled fears that the emergence of the company would lead to the elimination of modular refineries.

According to Edwin, Dangote’s business strategy has never been to eliminate its competitors, as the competition was always a motivation to improve products and services.

Edwin further explained that the Dangote refinery has the capacity to supply oil to the Nigerian and West African gasoline market.

He said that with the development of the refinery there will be the availability of high-quality products, a significant reduction in imports, a major shift in product storage and distribution efficiency and increased coastal distribution to West Africa.

“Dangote plans to export its diesel to Europe and gasoline to Latin America, Western and Central African markets.

“Dangote refinery is scheduled to be at full capacity by 2021. The refinery will be ready for commissioning early 2021, with full capacity reached by the end of the first half of the year,” Edwin said.

Edwin noted that the Dangote refinery, which is designed to maximize gasoline output, will produce enough to allow for a small surplus of that fuel for export. It will also be able to send a large volume of diesel and jet fuel to international markets.

According to report, Nigerian demand for petroleum products is estimated at about 60 million liters per day out of which about 45-50 million liters/day are imported. But, with the ongoing development of the 650,000bpsd Dangote refinery in Lagos State, if completed will go a long way to transform Nigeria from a net importer to a net exporter of petroleum products.