The African Petroleum Producers Organisation (APPO) has said the Dangote oil refinery will cut the importation of petroleum productions in Africa by 36 per cent.
APPO also said the success of the project could incentivise the rise of similar projects across Africa despite the current focus on energy transition.
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The Secretary-General of APPO, Dr Omar Farouk Ibrahim, said the refinery will supply over 12% of Africa’s products demand when it becomes operational.
“Currently, Africa’s daily petroleum demand is 4.3 million barrels per day (mbpd). Of this volume, 57% is produced locally (on the continent) while 43% is imported.
“When Dangote Refinery is fully on stream, the percentage of Africa’s products import shall drop to 36%. This is even as the total volume of products demand rises to 5.4mbd.
“You can therefore see the huge impact that Dangote refinery shall be making to overall products supply in Africa. Dangote shall be supplying over 12% of Africa’s products demand.
“That is huge savings for a continent that has scarce foreign exchange and little to export. Furthermore, the success of Dangote could incentivise the rise of similar projects, the noise about energy transition notwithstanding.”
Ibrahim also hailed Dangote’s decision to go ahead with the construction of crude oil refinery despite a campaign against fossil fuels, adding that the demand for fossil fuel is going to continue for several decades to come.