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Nigeria's Dangote Refinery Supplies Fuel Across Africa Amid Middle East Energy Disruptions
A major oil refinery in Lagos, Nigeria, is operating at full capacity and exporting refined petroleum products to multiple African countries. The facility, built with Chinese contractors, has helped address fuel shortages caused by tensions in the Middle East. Nigeria has become a net exporter of refined products as a result.
South China Morning PostAudio version
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A refinery in Lagos, Nigeria, is providing fuel to various African nations amid disruptions from Middle East tensions. The facility, with a capacity of 650,000 barrels per day, is described as the world's largest single-train refinery. It has supplied countries from Senegal to Mozambique, which previously depended on imports through the Strait of Hormuz.
The refinery was constructed at a cost of about US$20 billion over eight years. Chinese engineering, procurement, and construction contractors contributed to the project. The founder stated that partnerships with China provided credit lines and timely delivery.
The refinery's operations have positioned Nigeria as a net exporter of refined petroleum products. This development occurs against the backdrop of an energy shock linked to conflicts involving the US, Israel, and Iran. The facility has mitigated some impacts of the disruptions in Africa.
The refinery plans to increase its capacity to 1.4 million barrels per day. In February, it signed a US$400 million deal with China's XCMG Construction Machinery for the expansion. This follows the refinery reaching full production.
“The case between Africa and China is like where everybody abandoned you and somebody tells you, ‘Fine, you know what, let us partner with you’. We will get credit lines from China and deliver on time.”
