In a strategic move showcasing the competitiveness of American crude oil, Dangote Petroleum Refinery, Africa’s largest refinery, is set to import crude from the United States as it gears up for full-scale production in the coming months. The $20 billion facility, located in Lagos State, Nigeria, is making strides to become fully operational and has already received six million barrels of crude from various sources.
The refinery, a subsidiary of Dangote Industries Limited, is a significant industrial complex with a capacity to refine 650,000 barrels of crude oil per day. Recent reports reveal that the facility is expecting an additional two million barrels of crude oil from Trafigura Group in February.
This move marks a noteworthy development as Dangote Refinery diversifies its sources of crude, previously relying on Nigerian crude. Trafigura Group, a global commodity trading company, sold two million barrels of WTI Midland to Dangote Refinery for end-February delivery, signifying the first instance of the giant refinery purchasing non-Nigerian crude.
The refinery, located in the Dangote Industries Free Zone in Ibeju-Lekki, Lagos State, aims to transform crude oil into various refined products such as diesel, gasoline, jet fuel, and kerosene. The six million barrels received so far have come from the Nigerian National Petroleum Company Limited and other international oil companies operating in Nigeria.
The decision to import crude from the United States highlights the evolving dynamics of the global oil market and the increased influence of American barrels. The growth in US oil supply over the past decade has reshaped global markets, impacting oil-exporting countries like Nigeria.
While the facility has faced delays in its initial production projections, Dangote Petroleum Refinery remains a significant player in Nigeria’s oil and gas sector. The refinery’s executive director, Devakumar Edwin, previously mentioned temporary crude imports, emphasizing the firm’s commitment to receiving supply from the Nigerian National Petroleum Company Limited.
As the refinery continues its preparations for full-scale operations, the move to import crude from the United States underscores its adaptability and pursuit of diverse global partnerships to ensure optimal performance in the competitive oil industry.
