By FEMI ASU,
The crude oil refinery being built in Lagos by Dangote Industries Limited is a threat to refineries in Europe , which Nigeria relies mostly on for fuel imports , a global provider of energy and commodities information has said .
The Editorial Director , Strategic Oil Markets Development , S& P Global Platts , Andrew Bonnington, said at the S& P Global Platts Lagos Oil & Energy Forum on Thursday that the start of operations at the Dangote refinery would likely lead to the closure of some European refineries .
He told our correspondent on the sidelines of the event , “In Africa , the Dangote refinery is a huge story; one of the biggest refineries in the world being built in Nigeria , likely to supply most of or all of Nigeria ’ s consumption. That clearly has an impact on European refineries , because they export to Nigeria.
“It is impossible for me to say exactly what the impact will be, but it is not a good thing for European refineries that Dangote refinery is being built . ”
According to Bonnington , Europe is the biggest supplier of petroleum products to Nigeria , with about 75 per cent of petrol consumed in the country imported from the continent .
Last week , the President, Dangote Industries Limited, Aliko Dangote , said he had arranged more than $ 4.5 bn in debt financing for his refinery project and aimed to start production in early 2020.
Dangote, Africa’s richest man, is building a refinery with a capacity of 650, 000 barrels per day to help reduce Nigeria ’ s dependence on imported petroleum products .
He was quoted by Reuters as saying that lenders would commit about $ 3 . 15bn , with the World Bank’ s private sector arm providing $ 150 m , adding that he was investing more than 60 per cent from his own cash flow.
“We will end up spending between $ 12bn and $ 14bn . The funding is going to come through equity, commercial bank loans , export credit agencies and developmental banks . Hopefully, we will finish mechanical (construction ) by next year and products will start coming out in the first quarter of 2020 , ” Dangote added.