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Dangote Refinery Set To Export Two Fuel Cargoes – Reports
EKO HOT BLOG reports that the Dangote Petroleum Refinery has initiated tenders for the sale of two fuel cargoes for export, according to trading sources familiar with the matter.
This development comes amidst the eagerly anticipated release of products from the $20bn Dangote refinery, which was inaugurated in May last year by former President Muhammadu Buhari.
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Earlier this year, reports surfaced regarding regulatory approval delays hindering the refinery’s plan to release aviation fuel (Jet A1) and diesel for sale in the Nigerian market. Despite setting a timeline for product sales in January, the refinery encountered challenges in obtaining necessary regulatory approvals.
These setbacks persisted despite the refinery already commencing petroleum product production at its expansive facility. On January 12, 2024, the Dangote refinery announced the commencement of production for Automotive Gas Oil (diesel) and aviation fuel (Jet A1).
Constructed by Aliko Dangote, Africa’s wealthiest individual, the refinery boasts a capacity of 650,000 barrels per day and holds the potential to transform Nigeria from a fuel importer to a net exporter. Located on a peninsula near Lagos, Nigeria’s commercial capital, the refinery could significantly impact the power dynamics and profitability of the industry in West Africa.
Dangote Refinery
Despite requests for comment, Dangote has reportedly chosen not to respond to inquiries from journalists and has remained silent on multiple fronts.
According to Reuters, the initial shipment consists of 65,000 metric tonnes of low-sulphur straight-run fuel oil, entrusted to Trafigura, with loading scheduled for the end of February. Trafigura, however, declined to provide comments, and no further details on the transaction were disclosed.
The second tender involves approximately 60,000 tonnes of naphtha, as reported by three other sources. Two of these sources mentioned that the tender will close on February 15, though loading specifics are currently unavailable.
Insiders have indicated that the refinery is preparing to supply its initial fuel shipments to the local market in the coming weeks. These shipments will comprise two fuel types typically produced by processing light sweet crude through a crude distillation unit in a refinery lacking additional upgrading capabilities.
Experts suggest that the upgrading units may take several months to become operational. The refinery began purchasing crude oil in December last year, with Nigeria’s state-owned oil company NNPC Ltd serving as the primary supplier.
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Furthermore, Dangote has acquired oil from the United States and is expected to receive two million barrels of US WTI Midland in early March, as reported by LSEG and Kpler ship tracking.
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