<article><p>Nigerian industrial magnate Aliko Dangote's $9bn Lagos refinery project is on track to be completed in the third quarter of 2017.</p><p>A site in Lagos' Lekki Free Zone has been cleared for the 500,000 b/d refinery and construction is expected to begin "in a few weeks", Mansur Ahmed, executive director of the Dangote Group, told delegates at the 10th annual African Refiners Association conference in Cape Town in a presentation prepared by Aliko Dangote. The plant is expected to consume a mix of Nigerian crudes, but will also be flexible enough to refine crude from other sources.</p><p>A boost to domestic crude demand could be helpful to Nigeria's upstream industry, which is having to accept lower prices for its production in international markets now the traditional export market of the US has dried up. Nigeria's four existing state-run refineries are running at just 10pc of their total combined nameplate capacity of 450,000 b/d.</p><p>The Lagos refinery will produce products of Euro 5 standard, in anticipation of African specifications catching up with those in Europe, Ahmed said. The refining and petrochemical plant will be configured to maximize gasoline and propylene yields.</p><p>Speaking in the same session, Vitol president and chief executive officer Ian Taylor said that the issue of whether and when the Dangote refinery will start up is the "biggest question for Africa" in terms of the future of products supply.</p><p>As well as serving the burgeoning Nigerian gasoline market, the Dangote refinery will also focus on exporting to the west African region and even to Europe when arbitrage conditions allow, Ahmed said.</p><p>jg/bw</p><p><br> Send comments to <a href="mailto:feedback@argusmedia.com" target="_parent"> feedback@argusmedia.com </a></p><p><u><a href="http://www.argusmedia.com/Info/General/News" target="_TOP"> Request more information </a></u> about Argus' energy and commodity news, data and analysis services. </p><p><i> Copyright © 2015 Argus Media Ltd - <a href="http://www.argusmedia.com/" target="_TOP"> www.argusmedia.com </a> - All rights reserved. </i></p></article>
