Dangote Refinery Set To Export Two Fuel Cargoes – Report Reveals

The Dangote Petroleum Refinery has recently issued tenders to sell two fuel cargoes for export, trading sources familiar with the matter revealed.

This comes as Nigerians eagerly await the release of products from the $20bn Dangote refinery, inaugurated in May last year by former President Muhammadu Buhari.

Naija News recalls that earlier this year, there were reports that regulatory approvals were causing delays in the refinery’s plan to release aviation fuel (Jet A1) and diesel for sale in the Nigerian market.

Despite setting a timeline for the sale of petroleum products in January, the refinery faced challenges obtaining the necessary regulatory approvals.

These delays occurred despite the refinery having already started the production of petroleum products 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).

The Africa’s largest refinery, with a capacity of 650,000 barrels per day, was constructed by Aliko Dangote, the wealthiest individual on the continent. Situated on a peninsula near Lagos, Nigeria’s commercial capital, this refinery has the potential to transform the country from a fuel importer to a net exporter, significantly impacting the power dynamics and profitability of the industry in West Africa.

Despite requests for comment from journalists, Dangote has reportedly chosen not to respond.

Additionally, the oil company has remained silent on multiple inquiries.

Reuters, which quoted sources in the know for the latest update, said the initial shipment consists of 65,000 metric tonnes of low-sulphur straight-run fuel oil, which Dangote has entrusted to Trafigura.

The loading, it said, is scheduled for the end of February. Trafigura, however, declined to provide any comments. One of the refiners reportedly mentioned that Trafigura offered them the cargo, but no further details were provided.

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. Unfortunately, loading specifics are not currently available.

According to information provided by insiders last week, the refinery is preparing to supply its initial fuel shipments to the local market in the coming weeks.

The refinery will offer two fuel types, commonly produced by processing light sweet crude through a crude distillation unit in a refinery that lacks additional upgrading capabilities, Naija News learnt.

Experts have stated that the upgrading units will likely take several months to become operational. The refiner commenced purchasing crude oil in December last year, with Nigeria’s state-owned oil company NNPC Ltd serving as the primary supplier.

In addition, Dangote has acquired some oil from the United States and is anticipated to receive two million barrels of US WTI Midland in early March, as reported by LSEG and Kpler ship tracking.