Dangote to import phosphate and potash for $9bn petrochemical complex

07 Mar 2016
Chibuike Oguh

Summary

Dangote also said his company is constructing an undersea gas pipeline to link Nigeria's oil-producing Delta region to West Africa.

Dangote Group President Aliko Dangote

Aliko Dangote, President of the Dangote Group, has said that his company plans to import phosphate from Morocco and potash from Congo Brazzaville to supply its refinery and petrochemical complex.

Dangote Group is currently constructing a $9 billion refinery, thought to be the largest in the world, capable of processing 650,000 barrels of oil per day. When completed, the refinery would make Nigeria self-sufficient in petroleum products and a net exporter to other countries in West Africa. The fertilizer plant would be able to produce 2.8 million metric tonnes per annum of urea and ammonia.

Speaking at the Nigeria Summit hosted by the Economist, Dangote said his company is close to signing a deal with a Moroccan firm to supply phosphate, without giving details.

"We can actually build ... 30 percent cheaper than previously," Dangote said, referring to lower construction cost as a result of cheap global steel prices.

The petrochemical complex is expected to be completed by 2018.

Dangote also said his company is constructing an undersea gas pipeline to link Nigeria's oil-producing Delta region to West Africa. The pipeline will be able to transport 1.5 billion standard cubit feet of gas per day, he said, without giving further details, according to Reuters.
“Our gas project would have our gas pipelines on the sea bed. The output should be able to provide about 12,000MW of power,” Dangote said.

 “We have 15 countries in the ECOWAS community that is duty-free. Export market is big and profitable if you have capacity. Players in the manufacturing should be encouraged to export if they have the capacity. We must also meet local consumption.”

According to the 2016 Forbes billionaire list, Dangote is Africa’s richest man with a fortune of $15.4 billion.


Other Photos/Videos