Dangote refinery secures 1m barrels Algerian crude in race to ease domestic shortfall

Nigeria’s 650,000 b/d Dangote refinery has acquired its first cargo of Algeria’s Saharan Blend crude, a premium light sweet crude, from trading firm Glencore.

The one million-barrel shipment is expected to arrive between March 15-20, marking a key step in Dangote’s crude supply diversification as it scales up production.

Argus, quoting market sources noted that Dangote bought the 1mn barrel cargo from trading firm, Glencore this week adding that the deal was not directly confirmed by either party and the price is unknown.

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Saharan Blend, known for its high quality, boasts an API gravity of 45.3 and a low sulfur content of 0.1%, making it a highly sought-after grade.

Sourced primarily from the Hassi Messaoudregion, it is one of Algeria’s top crude exports, traditionally supplied to European markets.

However, this latest deal signals a growing shift toward emerging markets, with Nigeria’s Dangote refinery now tapping into Algeria’s premium crude to optimize its refining output.

According to Argus, tankers loaded in Algeria this February are not headed to Africa, suggesting the cargo for Dangote refinery will load in March.

A trader noted that Saharan Blend’s quality is well-suited for the refinery and is competitively priced compared to Nigerian crude grades.

Dangote Refinery’s hunt for crude oil

Beyond domestic sourcing, Dangote Refinery has been exploring long-term crude supply contracts from international markets, including the United States.

In September 2024, Dangote Refinery reached an agreement with the Nigerian National Petroleum Company Limited (NNPCL) for the supply of 15 cargoes of crude oil. However, only six cargoes were allocated by NNPC.

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When the refinery approached International Oil Companies (IOCs) operating in Nigeria for additional supply, it was either directed to their international trading arms or informed that existing cargoes were already committed elsewhere.