MIDOil to Compete Dangote with New Modular Refinery in Lagos

MIDOil Refining and Petrochemical Company Limited has announced its plans to build a modular refinery in Lagos. This move positions the company as a direct competitor to the much-anticipated Dangote refinery, signaling a new era of competition and innovation in the sector.

The new refinery, slated for construction at Sekungba/Ejinrin in the Ikosi/Ejirin Local Council Development Area of Lagos State, aims to bolster Nigeria’s refining capacity with a production capability of 100,000 barrels per day (bpd). 

This initiative is expected to enhance the country’s self-sufficiency in petroleum products, stimulate economic growth, and create job opportunities.

MIDOil acquire $5 billion investment

MIDOil has secured a whopping $5 billion investment from a consortium of investors, demonstrating strong confidence in the project and Nigeria’s oil and gas industry as a whole. 

Elizabeth-Omolara Akinntonde, the company’s Executive Chairman, highlighted the decade-long journey to bring this vision to life, from its initial conception by Hajiya Amina Abdullahi, an official of the then National Petroleum Corporation, to the acquisition of land allocated by the Lagos State government under former Governor Babatunde Fashola.

What the plan entails

The groundbreaking ceremony for the refinery is scheduled for July 12, 2024, marking the official commencement of construction. This event will also signal the launch of MIDOil Filling Stations nationwide, further expanding the company’s presence in the downstream sector. 

In addition, MIDOil has extended its support to the host communities by presenting cheques as a gesture of goodwill and partnership.

The significance of this project extends beyond its direct impact on Nigeria’s oil and gas industry. It represents a shift towards modular refining, a more flexible and cost-effective approach compared to traditional large-scale refineries. 

This trend is gaining traction globally, offering a viable solution to meet the growing demand for refined petroleum products.

Another new era for Nigeria’s refining industry

As the Dangote refinery prepares to commence operations, adding MIDOil’s modular refinery will further solidify Lagos as a key refining hub in Africa. With the Nigerian National Petroleum Company Limited (NNPCL) also announcing the imminent start of production at the Port Harcourt refinery, Nigeria is poised for a major transformation in its refining capabilities. 

This wave of new refineries, including the recent completion of the Petroleum Training Institute’s modular refinery in Delta state, underscores a broader shift towards enhancing local refining capacity. 

This strategic direction is crucial for Nigeria’s energy security, economic diversification, and sustainable development. In conclusion, the advent of MIDOil’s modular refinery in Lagos, alongside the Dangote refinery and other upcoming projects, marks a significant milestone in Nigeria’s journey towards self-reliance in petroleum refining. 

This competitive landscape promises to usher in an era of innovation, efficiency, and growth, positioning Nigeria as a key player in the global oil and gas industry.