OGEJOURNAL Menu

Dangote plans 600km offshore gas pipeline, targets 1.4m bpd refinery capacity

Dangote Industries Limited is planning to build a 600-kilometre offshore gas pipeline to improve the movement of natural gas from offshore fields to processing facilities onshore.

The company’s Group Vice President, Oil and Gas and Fertiliser, Devakumar Edwin, disclosed this during a tour of the Dangote Petroleum Refinery in Lagos.

Edwin said the proposed East-West offshore gas-gathering pipeline would allow offshore gas producers to connect their fields to the system and transport gas to shore.

According to him, the engineering design for the project has been completed, with construction expected to begin soon.

He explained that producers could either have their gas processed and returned to them or sell it to Dangote for use in its operations.

Edwin said the project was designed to address one of the major challenges facing Nigeria’s gas industry — inadequate infrastructure for moving offshore gas to onshore facilities.

He noted that some gas resources remain undeveloped because producers lack the infrastructure required to bring the gas ashore.

Beyond the gas project, Edwin said the Dangote refinery currently generates 501 megawatts of electricity for its operations, while the fertiliser plant produces more than 150MW.

This brings the combined power generation capacity of the facilities to more than 650MW, although the electricity is currently used within the company’s operations.

He said Dangote could eventually expand its power generation activities for commercial purposes, but identified poor electricity distribution infrastructure and challenges with revenue collection as barriers to selling additional power.

Meanwhile, the company is expanding its fertiliser business, with plans to raise annual production from three million tonnes to 12 million tonnes.

Edwin said the expansion would include four additional fertiliser production trains in Nigeria, alongside planned projects in Ethiopia and another African country.

The company also plans to increase its range of fertiliser products to include diammonium phosphate and single super phosphate.

He said the expansion was aimed at meeting rising fertiliser demand across Nigeria and other African markets while creating more value from locally available raw materials.

Dangote is also expanding its chemical and petrochemical operations, including plans for linear alkyl benzene, base oil and polypropylene production.

On the refinery, Edwin said the company plans to double its processing capacity from the current 700,000 barrels per day to 1.4 million barrels per day.

He said most of the engineering work for the expansion had been completed and major equipment had already been ordered, with the company targeting completion within three years.

The refinery is currently seeking to raise about ₦2.15tn through an initial public offering to support its expansion plans and strengthen its capital base.

Edwin added that Dangote was developing pipelines and storage facilities in different parts of Africa to improve the distribution of petroleum products, particularly to landlocked countries.

He said the projects would reduce reliance on road transportation and support greater energy security across the continent.

The various projects form part of Dangote’s broader Vision 2030 strategy focused on expanding industrial production and adding value to raw materials within Africa.