Dangote Unveils Massive Offshore Gas Infrastructure to Anchor West African Energy Supremacy

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Dangote Unveils Massive Offshore Gas Infrastructure to Anchor West African Energy Supremacy

UGO AMADI

Dangote Industries Limited is set to rewrite Nigeria’s energy infrastructure map with a bold 600-kilometre offshore gas-gathering pipeline, a project that could unlock stranded gas reserves and reshape fuel, power and fertiliser supply across Africa.

The ambitious East-West offshore pipeline was disclosed on weekend  by Mr. Devakumar Edwin, Group Vice President, Oil and Gas and Fertiliser, Dangote Industries Ltd., during a tour of the Dangote Petroleum Refinery in Lagos.

 “We want to run, in the first place, a 600-kilometre pipeline in the sea,” Edwin said, noting that engineering design has been completed and construction will commence soon. The pipeline is conceived as a common carrier for offshore producers. Instead of capping gas-rich wells for lack of evacuation routes, producers will be able to tie-in, pump gas to shore for processing, and either take back treated gas or sell to Dangote, The intervention targets one of Nigeria’s oldest paradoxes: abundant gas, scarce infrastructure.

“When we strike a gas well, if it is full of gas, we just cap the well and sit it,” Edwin said, lamenting that several offshore discoveries remain undeveloped because there is no system to bring the gas ashore. If executed, the pipeline would not only feed Dangote’s own sprawling industrial complex but also create a backbone for Nigeria’s gas commercialization and energy security agenda.

Power Giant in Disguise

Interestingly, behind the refinery’s fuel narrative lies a quiet power revolution .Edwin disclosed that the Dangote Petroleum Refinery currently generates 501 megawatts of electricity for its own operations, while the fertiliser complex adds over 150MW — pushing total captive generation to more than 650MW, larger than what many national grids deliver in the region.

“All of it is going for our own consumption, including standby capacity,” he said. But the company is already eyeing commercial power. With expertise in gas turbines, gas engines, coal and other thermal technologies, Dangote sees electricity as the next business frontier, constrained only by Nigeria’s weak distribution and revenue collection systems.

“The opportunity is there to generate power and go into it as a business,” he noted.

From 700,000 to 1.4 Million Barrels

The gas pipeline is just one strand of Dangote’s Vision 2030.  The conglomerate is planning to double its refinery capacity from the current 700,000 barrels per day to 1.4 million bpd by 2029 — a move that would make it the world’s single largest refinery complex. The original design of 650,000 bpd has already been debottlenecked to 700,000 bpd, with tests showing 710,000 bpd at the crude distillation unit.

Edwin said basic and detailed engineering for the expansion are almost complete, major equipment ordered, contracts signed and advance payments made.

“We are targeting for three years, and probably we may be even doing faster,” he said, adding that the second phase will cost less than the first because the quarry, port, welding-gas plant and land infrastructure already exist.

To fund the growth, Dangote Petroleum Refinery and Petrochemicals is seeking about N2.15 trillion through an ongoing Initial Public Offering (IPO).The expansion is strategic. The refinery was deliberately configured to maximise petrol at 53% of output — against 22% in conventional Nigerian refineries — to match Nigeria’s consumption pattern. In total, 95% of output is high-value products — petrol, diesel and jet fuel — produced to Euro 5 and Euro 6 standards for both domestic and export markets in the US and Europe

.It is also built for crude flexibility, capable of processing most African grades and US WTI, reducing over-dependence on Nigerian crude.“We have designed it to have a wider range of crudes which can be processed,” Edwin said.

Fertilisers, Petrochemicals and Continental Reach

Beyond fuels, Dangote is scaling its fertiliser business from three million tonnes per annum to 12 million tonnes, with four additional trains in Nigeria and new plants planned in Ethiopia and another African country. New products — diammonium phosphate and single super phosphate — are also on the cards.

“We want to take the raw materials from the countries and add value, create employment, add to the GDP,” Edwin said.

Parallel expansions are planned for linear alkyl benzene, base oil and polypropylene.The group is also building pipelines and storage hubs across Africa to cut reliance on road haulage and improve supply to landlocked countries — a direct play at continental energy security.

Daily Champion, which joined the tour, observed a highly automated facility, with over 70% of operations controlled from a central Main Control Room, a lean on-site workforce, and early construction works for the expansion already underway around the central lab, gantry, loading bays and vast storage tanks.

For Nigeria, the message is clear: Dangote is no longer just refining crude. It is laying gas highways, generating power at industrial scale, and doubling its bet on Africa’s industrial future.

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