Loan approved for grassroots Nigerian refinery

Nigerian business conglomerate Dangote Group has secured a $300 million loan for the construction and operation of a greenfield refinery and polypropylene plant in Nigeria.

The board of directors of African Development Bank (ADB) on June 13 approved the loan, which also will be used for the construction of a greenfield fertilizer manufacturing plant, ADB said.

Together, the planned projects will double the country’s refining capacity, reduce by 80% current fuel imports into Nigeria, eliminate foreign fertilizer imports, and help Nigeria to progressively become a major exporter of both petroleum products and fertilizers, according to ADB.

Dangote Group previously signed a $3.3 billion loan agreement with a consortium of international banks for the refining complex and fertilizer plant in September 2013, according to a Sept. 4, 2013, release from Standard Chartered Bank, who served as lead financier for the deal.

Land acquisition for the refinery and petrochemical plant, both to be cited in the free-trade zone of Nigeria’s Ogun state, is nearing completion, according to information posted to Dangote Group’s web site.

The company earlier let a contract to Engineers India Ltd. (EIL) for project management consultancy and engineering, procurement, and construction management for the planned 400,000-b/d refinery and 600,000-tonne/year polypropylene plant (OGJ Online, Nov. 25, 2013).

The refinery project will include a crude distillation unit, single-train residual fluid catalytic cracking unit, diesel hydrotreating unit, continuous catalyst regeneration unit, alkylation unit, and polypropylene unit, EIL said.

A single-point mooring terminal for crude oil and product handling also would be integrated with the refinery, EIL said.

An official timetable for construction and commissioning of the refining and petrochemical project has not been disclosed.

Related Articles

INTERNATIONAL BRIEFS

01/01/1990 WESTCOAST ENERGY INC., Vancouver, B.C., agreed to buy the utilities and propane business of Inter-City Gas Corp. (ICG), Winnipeg, Man., for $720 mi...

HOW INDEXES HAVE RISEN

01/01/1990 Continuing a trend starting in 1983, the Nelson-Farrar refinery construction index rose slowly, from 1106.2 in January 1987, to 1184.1 in December ...

OGJ NEWSLETTER

01/01/1990 Will oil price stability dominate the 1990s? Analyst Philip Verleger thinks so. Using a measure of market concentration the U.S. government uses t...

DOE PRESSES CLEAN COAL PROGRAM

01/01/1990 The U.S. Department of Energy has chosen 13 more clean coal technology (CCT) projects in its third round of competition. If private sponsors and DO...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected