Dangote Refinery Set to Export First Fuel Cargoes

Dangote refinery to export two fuel cargoes – Report
Dangote refinery to export two fuel cargoes – Report

The Dangote Petroleum Refinery has initiated the sale of two fuel cargoes for export, marking a significant milestone for the newly commissioned $20bn refinery in Nigeria. According to trading sources familiar with the matter, the refinery is set to export its first fuel cargoes, a development eagerly anticipated by Nigerians since its inauguration in May last year by former President Muhammadu Buhari.

In February 2024, it was reported that regulatory approvals had delayed Dangote Petrochemical Refinery’s plan to release aviation fuel and diesel in the Nigerian market. Despite setting a January 31 timeline for the release, the refinery faced obstacles in obtaining regulatory approvals, delaying the sale of its petroleum products in the local market.

The refinery announced the commencement of Automotive Gas Oil (diesel) and aviation fuel (JetA1) production on January 12, 2024. With a nameplate capacity of 650,000 barrels per day, the Dangote refinery is poised to transform Nigeria from a fuel importer to a net exporter, potentially reshaping power and profit dynamics in the industry.

The first cargo, comprising 65,000 metric tonnes of low-sulphur straight run fuel oil, was awarded to Trafigura and is scheduled for loading at the end of February. Additionally, the refinery issued a tender for approximately 60,000 tonnes of naphtha, with the tender closing on February 15. The sources revealed that the refinery is preparing to deliver its first fuel cargoes to the domestic market in the coming weeks.

The refinery’s ability to process light sweet crude and its oil purchases from the United States signal a promising future. While it may take time to fully utilize its upgrading units, the refinery’s potential to reshape Nigeria’s fuel dynamics is evident. Despite declining to comment, Dangote’s strategic moves have set the stage for a significant shift in the region’s energy landscape.

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