The Dangote Petroleum Refinery is set to import crude oil from the United States in the coming months, as the $20 billion facility intensifies moves to start pumping out refined products.
Africa’s largest refinery’s move to import crude from the US is a sign of just how competitive American barrels have become in the global market, Bloomberg reported on Monday.
The multi-billion dollar refinery is also reportedly expecting two million barrels of crude oil from Trafigura Group in February.
The Dangote Petroleum Refinery and Petrochemical Project, a subsidiary of Dangote Industries Limited, is a 650,000 barrels per day crude oil refinery, located in Dangote Industries Free Zone, Ibeju-Lekki, Lagos State.
The refinery is an industrial plant that transforms crude oil into various usable petroleum products such as diesel, gasoline, jet fuel and kerosene.
The facility has, so far, received six million barrels of crude oil at its two SPMs located 25km from the shore. The first crude delivery was done on December 12, 2023, and the 6th cargo was delivered on January 8, 2024.
The six million barrels were supplied by the Nigerian National Petroleum Company Limited and other international oil companies that operate in Nigeria.
On Monday, Bloomberg also reported that Trafigura Group sold two million barrels of WTI Midland to Dangote refinery for end-February delivery.
It said this was disclosed by traders with knowledge of the matter. This is the first time that the giant refinery has purchased non-Nigerian crude, traders said.
Trafigura is a multinational commodity trading company headquartered in Singapore, with major hubs in various locations including Geneva, Houston, Montevideo and Mumbai. The group participates in the oil and petroleum products market.
They primarily trade in base metals and energy, including oil, and also other commodities like minerals and metals. They have activities involving US oil as a globally focused company.
It should be noted that the growth in US oil supply over the past decade has reshaped the global market, extending its influence to regions like Asia. Nigeria, whose economy heavily relies on petroleum exports, is particularly impacted by these transatlantic deliveries.
The facility can refine crude oil grades from various countries, hence the move to import crude from the US.
