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Dangote Refinery Boosts Operations With Second US Crude Oil Shipment

Dangote Refinery Boosts Operations With Second US Crude Oil Shipment
Dangote Refinery Boosts Operations With Second US Crude Oil Shipment

Dangote Refinery

Dangote Refinery, Africa’s largest oil refinery located on the outskirts of Lagos, Nigeria, has significantly increased its stock of imported crude oil from the United States. A second shipment of US light sweet crude oil embarked on its journey to Nigeria this Friday, marking a crucial step in the refinery’s procurement strategy.

According to Reuters, the vessel named Otis, laden with approximately 850,000 barrels of WTI Midland crude oil from Houston, set sail last week with Lekki, Nigeria, as its destination. The cargo, chartered by the global energy and commodities trading company Vitol, is expected to reach Nigeria by mid-March, as per tracking data from Kpler and LSEG.

This development follows the arrival of the first shipment comprising two million barrels of US crude on the very large crude carrier Gem No. 1, also chartered by Vitol. The cargo is nearing Nigeria and is slated for discharge next week, further demonstrating the refinery’s commitment to securing diverse sources of crude for its operations.

Dangote Refinery, constructed by Aliko Dangote, Africa’s wealthiest individual, is a state-of-the-art facility with a nameplate capacity of 650,000 barrels per day. Since commencing its crude procurement in December last year, the Nigerian National Petroleum Corporation Ltd (NNPCL) has been the primary supplier of crude to the refinery.

In a recent development, the refinery issued tenders to sell two fuel cargoes for export, according to a tender document and sources familiar with the matter who spoke to Reuters. This move is part of Dangote Refinery’s broader strategy to not only process but also participate actively in the global oil market.

Bloomberg reported in January that Trafigura Group, a leading multinational commodity trading company, sold two million barrels of WTI Midland to Dangote Refinery for end-February delivery. This transaction marked the refinery’s first purchase of non-Nigerian crude, signalling its openness to diversifying its crude supply sources to ensure uninterrupted operations.

Trafigura, with its global presence and expertise in the oil and petroleum products market, plays a pivotal role in facilitating the trade of crude oil to the Dangote Refinery. This collaboration underscores the interconnectedness of global energy markets and the strategic manoeuvres by major players to secure supply chains.

As Dangote Refinery continues to ramp up its operations and expand its crude procurement strategy, it sets the stage for enhanced refining capacity in Africa. This development not only solidifies Nigeria’s position in the global oil market but also represents a significant leap towards self-sufficiency in petroleum products for the continent.

The post Dangote Refinery Boosts Operations With Second US Crude Oil Shipment appeared first on Naija News.

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