Dangote Refinery Boosts Operations With Second US Crude Oil Shipment
Dangote Refinery, the largest oil refinery in Africa situated on the outskirts of Lagos, Nigeria, has made a significant upgrade to its crude oil stock with a second shipment of US light sweet crude oil. Setting sail from Houston, the vessel named Otis carrying approximately 850,000 barrels of WTI Midland crude embarked on its journey to Nigeria this Friday, targeting Lekki, Nigeria, as its next stop. The cargo, managed by the global energy and commodity trading company Vitol, is anticipated to arrive by mid-March, according to tracking data from Kpler and LSEG.
This move follows closely after the refinery’s receipt of its first US crude shipment, consisting of two million barrels transported on the very large crude carrier Gem No. 1, also managed by Vitol. The first cargo is on its final approach to Nigeria, ready for discharge next week, showcasing the refinery’s dedication to diversifying its crude sources for operations.
Built by Aliko Dangote, recognized as Africa’s wealthiest individual, Dangote Refinery operates with a sophisticated infrastructure capable of processing up to 650,000 barrels of crude daily. Since initiating its crude procurement in December of the previous year, the refinery has primarily received its crude supply from the Nigerian National Petroleum Corporation Ltd (NNPCL).
In a notable development, the refinery has issued tenders for the sale of two fuel cargoes for export, a strategic move outlined in a tender document as well as by insiders familiar with the mater. This action is aligned with Dangote Refinery’s overarching strategy of not just processing crude oil but also actively engaging in the global oil marketplace.
Journeying back to January, as reported by Bloomberg, Trafigura Group, an eminent multinational commodity trading firm, executed the sale of two million barrels of WTI Midland crude to Dangote Refinery, earmarked for delivery by the end of February. This marked the refinery’s inaugural procurement of non-Nigerian crude, indicating a strategic pivot toward diversifying its crude acquisition sources to maintain steady operational flow.
Trafigura’s significant role in this transaction, utilizing its widespread network and mastery over the oil and petroleum products market, exemplifies the seamless integration within global energy markets. This collaboration highlights the actionable strategies undertaken by key market participants to secure their supply chains efficiently.
Through the continued enhancement of its operations and broadening of its crude procurement strategies, Dangote Refinery is setting a precedent for heightened refining capabilities within Africa. This progress not only cements Nigeria’s stature within the international oil arena but also marks a crucial step towards achieving self-reliance in petroleum products across the continent.
