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Sunday, February 25, 2024

Dangote Refinery to Import US Crude Oil in Strange Yet Historic Move


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Nigeria’s Dangote Refinery, with a daily capacity of 650,000 barrels, is poised to make history by importing crude oil from the United States, marking a significant departure from its reliance on Nigerian crude.

Trafigura Group, a global commodity trading company, has reportedly sold 2 million barrels of WTI Midland to the Dangote Refinery for delivery at the end of February, according to traders with knowledge of the matter.

Dangote refinery

This marks the first instance of the massive refinery sourcing non-Nigerian crude, signaling a strategic diversification in its crude oil procurement strategy. The move comes after the Dangote Petroleum Refinery recently commenced the production of diesel and aviation fuel, achieving a milestone in its operational capabilities.

In a statement released earlier this month, the refinery announced the initiation of production, noting that it had received a total of six million barrels of crude oil at its two Single Point Moorings (SPMs) located 25 kilometers from the shore. The crude deliveries began on December 12, 2023, with the most recent cargo arriving on January 8.

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The initial cargo, sourced from the Agbami crude grade through Shell International Trading and Shipping Company Limited (STASCO), set the stage for subsequent deliveries. The latest addition of one million barrels of crude bonny light from the Nigeria National Petroleum Company (NNPC Ltd) further underscores the refinery’s progress in ramping up its production of refined petroleum products.

The Dangote Refinery, touted as the world’s largest single-train refinery, is poised to receive a total of six million barrels of crude, with Trafigura facilitating the second consignment through the MT Otis. The refinery’s extensive truck-loading capacity, capable of handling 2,900 trucks per day at its gantries, positions it as a key player in the region’s refining landscape.

Dangote Refinery to Import US Crude Oil in Strange Yet Historic MoveThe products emanating from the Dangote Refinery are expected to meet Euro V specifications, reflecting a commitment to producing high-quality refined petroleum products. As the refinery continues to make strides in its operational capabilities, the decision to import US crude signals a strategic move that could have implications for Nigeria’s oil and gas sector dynamics.


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