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    XCMG helps Nigeria's Dangote refinery get up to speed

    A major oil refinery project in Nigeria, led by the Dangote Group, is nearing completion with the help of XCMG, a Chinese construction machinery manufacturer. The Dangote Refinery, located in Lagos, is the world's largest single-train refinery and will be able to process 650,000 barrels of crude oil per day and produce 12,000 megawatts of electricity. It will also create over 135,000 jobs and reduce Nigeria's reliance on oil imports.
    XCMG equipment at the Dangote site. Source: Supplied
    XCMG equipment at the Dangote site. Source: Supplied

    XCMG has supplied various types of equipment for the project, including excavators, cranes, and loaders. The equipment has been customised to adapt to the challenging environment of Lagos, which has high temperature, humidity, and dust levels. XCMG has also provided on-site service and support to ensure the smooth operation of the equipment.

    “XCMG has supported numerous infrastructure projects in Africa, from the Dangote Refinery to the Nairobi Expressway. We hope to leverage our leading advantages of construction machinery technology and equipment to support infrastructure development and create greater values for economic development and people,” said Yang Dongsheng, CEO and chairman of XCMG.

    Not enough to affect petrol price

    Despite its historic production capacity, the Nigerian National Petroleum Company Limited (NNPCL) has said that the local production of premium motor spirit (PMS) by Dangote, Port Harcourt and other refineries will not affect the petrol pump price.

    “There is a notion that if the product is processed locally, prices will reduce. Let me make it clear that it is not going to change anything. If you produce locally, the refineries will also input the cost of production and other things and it will be sold at the current price," explained group CEO Mele Kyari.

    “There will also be no subsidy when local production starts because there is no cash-to-back subsidy, this country no longer has the resources to continue with subsidy."

    Meanwhile Aradel Holdings MD and CEO, Adegbite Falade, has revealed that in less than 12 months, the company’s modular refinery would begin to refine PMS.

    “Starting within less than 12 months, we are going to come on stream as the first privately owned modular refinery into the refinery of PMS and the domestication arrives within the domestic economy. Nigerians should expect a refinery that is going to be significantly larger in capacity,” said Falade at the company's 30th anniversary and rebranding festivities in Lagos earlier this month.

    Aradel Holdings was previously known as Niger Delta Exploration & Production Plc (NDEP), with the name change a "better reflection of the company's long-term strategy of becoming Africa’s leading organisation in the delivery of sustainable energy solutions that support economic growth".

    About Lindsey Schutters

    Lindsey is the editor for ICT, Construction&Engineering and Energy&Mining at Bizcommunity
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