Dangote refinery poised to import crude from US by end of February

The Dangote Refinery in Nigeria, the largest in Africa, is poised to reach a major milestone by diversifying its sources of crude oil supply. According to well-informed traders, the Trafigura Group is reported to have sold 2 million barrels of WTI Midland to the Dangote refinery for delivery by the end of February. This transaction marks a significant turning point for the refinery, as it prepares to import crude oil from the United States for the first time, according to a Bloomberg report.

The decision of the Dangote refinery to import crude oil from the United States reflects its desire to diversify its sources of supply in order to optimize its operations. This initiative is part of a strategy aimed at enhancing the company’s competitiveness in the global refining market. By sourcing from new suppliers, the Dangote refinery seeks to ensure a stable and diversified crude oil supply while capitalizing on opportunities offered by international markets.

This decision comes as the Dangote refinery recently received several shipments of bonny light crude oil supplied by the Nigeria National Petroleum Corporation Limited (NNPC). These supplies, combined with the planned import of crude oil from the United States, will provide the refinery with adequate crude oil supply to commence operations in the coming months.

With the imminent arrival of these new crude oil supplies, the Dangote refinery is nearing its commissioning goal. According to Akin Omole, the Managing Director of Dangote Ports Operations, the refinery is expected to receive approximately four million additional barrels of crude oil by the end of 2023, followed by an additional two million barrels in early January 2024. This wave of crude oil supplies will position the refinery favorably to commence operations as soon as the six million barrels have been delivered.

Once these supplies are fully received, the Dangote refinery will be able to commence its initial production phase, starting with the manufacture of diesel, jet fuel, and LPG, before progressing to the production of Premium Motor Spirit (PMS). This marks a crucial milestone in the development of the Dangote refinery, which will emerge as a key player in the global refining market.