News

Dangote Refinery To Export First Fuel Cargoes – Reuters Report

Published

10 months ago

Feb 15, 2024.

Eko Hot Blog reports that the Dangote Petroleum Refinery has initiated tenders to sell two fuel cargoes for export, marking a significant step for the newly commissioned $20 billion refinery, according to trading sources familiar with the matter, as reported by Reuters.

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Nigerians have been eagerly anticipating the release of products from the Dangote refinery since its inauguration in May last year by former President Muhammadu Buhari.

However, regulatory approvals had reportedly stalled the refinery’s plan to release aviation fuel (Jet A1) and diesel in the Nigerian market, as highlighted in a report by The PUNCH on February 8, 2024.

The refinery, with a capacity of 650,000 barrels per day, began production of Automotive Gas Oil (diesel) and Jet A1 on January 12, 2024, making it Africa’s largest refinery.

The tendered fuel cargoes, signaling the refinery’s move into the export market, include 65,000 metric tonnes of low-sulphur straight run fuel oil, awarded to Trafigura, and about 60,000 tonnes of naphtha.

“Nigeria has for years relied on expensive imports for nearly all the fuel it consumes, but the $20bn refinery is set to turn it into a net exporter of fuel to other West African countries, in a huge potential shift of power and profit dynamics in the industry,” Reuters stated.

While Dangote declined to comment on the matter, the report suggests that the refinery is gearing up to deliver its first fuel cargoes to the domestic market in the coming weeks.

The offered fuels are typical products derived from running light sweet crude through a crude distillation unit, without further upgrading capacity.

The full operationalization of upgrading units is expected to take months.

The trajectory of Dangote Refinery as a net exporter signifies a potential transformation in Nigeria’s fuel dynamics, where the country has traditionally depended on costly imports.