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Dangote Begins Petrol Exports To West African Countries

Published

1 month ago

Nov 20, 2024.

The Dangote Petroleum Refinery has commenced the export of refined petroleum products to neighboring West African nations, signaling a potential disruption in regional fuel markets.

A Bloomberg report on Tuesday, citing data from Vortexa, Kpler, Precise Intelligence, and ship-tracking platforms, revealed that a tanker recently transported a shipment of gasoline from Dangote’s refinery to the waters off the coast of Togo.

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EKO HOT BLOG reports that the vessel, CL Jane Austen, carried over 300,000 barrels of fuel from the refinery, marking the beginning of Dangote’s export operations.

This move comes on the heels of statements made last month by Mustapha Abdul-Hamid, Chairman of the Ghana National Petroleum Authority (GNPA), who revealed that Ghana is considering purchasing petroleum products from the Dangote refinery.

This shift aims to reduce the country’s reliance on more expensive European imports, which cost Ghana approximately $400 million per month. By sourcing fuel from Nigeria, Ghana anticipates lower prices for goods and services, as freight costs will be reduced.

“If the refinery reaches a daily capacity of 650,000 barrels per day, all of that output cannot be consumed by Nigeria alone,” Abdul-Hamid stated at the OTL Africa Downstream Oil Conference in Lagos. “Instead of importing from Rotterdam, it will be easier to import from Nigeria, which should help lower prices.”

Additionally, it was reported two weeks ago that Dangote refinery is set to begin fuel exports to South Africa, Angola, and Namibia. Negotiations are also underway with six other African countries – Niger Republic, Chad, Burkina Faso, and the Central African Republic.

A credible source confirmed that talks are progressing with Ghana, Angola, Namibia, and South Africa, while discussions with Niger, Chad, Burkina Faso, and Central Africa Republic are in the early stages.

The recent shipment, now stationed off the coast of Togo, is part of a larger strategy to increase production at Dangote’s refinery.

While the shipment size is relatively small compared to global gasoline markets, it highlights the refinery’s growing export potential, which could reshape regional fuel markets.

In August, the refinery sent its first gasoline cargo to Lagos, Nigeria’s commercial hub. The future of Dangote’s fuel exports will depend on its ability to ramp up production and secure consistent demand across the region.

Dangote Begins Petrol Exports To West African Countries

The Federal Government recently lifted the monopoly on fuel purchases from the state-owned oil company, allowing Dangote’s refinery to cater to both domestic and international markets.

As of now, Dangote spokespersons have not responded to requests for comment on the exports.