Dangote Industries Ltd. says it plans to develop a 600km offshore gas-gathering pipeline to connect offshore gas producers to processing facilities onshore, as part of its wider energy and industrial expansion programme.
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 on Friday, September 18. He said the engineering design for the East-West offshore pipeline had been completed and construction was expected to begin soon.
Edwin said the project would help address infrastructure gaps that have left some offshore gas discoveries undeveloped. He explained that producers would be able to connect to the pipeline and either have their gas treated and returned or sell it to Dangote for utilisation.
The refinery currently generates 501MW of electricity for its operations, while the fertiliser complex generates more than 150MW, bringing total generation across the complex to over 650MW. Edwin said additional power could eventually be commercialised, although inadequate distribution infrastructure and revenue collection remain challenges.
Dangote is also expanding its fertiliser business, with plans to increase annual production from three million tonnes to 12 million tonnes, alongside additional projects in Nigeria, Ethiopia and another African country. The company is also pursuing chemical, petrochemical, pipeline and storage projects across Africa.
Edwin said the refinery’s capacity is targeted to rise from the current 700,000 barrels per day to 1.4 million barrels per day, with most engineering work completed and major equipment ordered. The expansion, he said, is expected to support the company’s broader Vision 2030 strategy of increasing local processing, industrial production, employment and value addition across Africa.
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