A new report by S&P Global has revealed that the United States is a major supplier of crude oil to Nigeria’s Dangote Refinery, accounting for 30 percent of the total 47 cargoes delivered to the facility thus far.
According to the report, the plant has scaled to 400,000 bpd and delivered diesel, jet fuel, naphtha and fuel oil to both domestic and export markets while Petrol, Nigeria’s primary fuel type, should be produced from mid-August.
“The US grade has accounted for 30 percent of crude delivered to Dangote, through 18 cargoes,” S&P Global said.
“While traders hinted that the US grade could rival domestic supply on pricing in the long term, its status as a staple of the Dangote diet now looks increasingly uncertain,” the report reads.
“Difficulties in accessing foreign exchange have left PetroChina vessels loaded with WTI Midland sitting off the refinery for weeks, with the Chinese firm reportedly reluctant to swap crude for products.”
S&P Global said aside from these issues, crude flows in and out of the Dangote refinery have been felt in other markets — especially in Europe, the largest consumer of light, sweet Nigerian crude.
S&P Global Commodities at Sea (CAS) data showed European imports of Nigerian crude have decreased since January — with only imports of US oil falling more.
According to the data, Brazil, Egypt, Libya, and Guyana have increased supply.
“Nigeria — which previously did not import crude — has seen the largest increase in WTI Midland imports globally since the refinery’s inauguration growing call on WTI Midland could affect Asia and Europe, the main export markets for the US crude which has emerged as a “swing” grade in recent years,” the report reads.
“For two consecutive years, Europe has ramped up WTI Midland imports by 20% to plug gaps left by sanctioned Russian oil.
“On a macro basis, Nigerian exports have fallen in successive quarters since last year.”
CAS data, according to the report, shows Nigeria exported 1.4 million bpd in Q1 2024 and 1.24 million bpd in Q2 2024 — down from 1.5 million bpd in Q4 2023.
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During a tour of the refinery with journalists recently, Dangote said the refinery was fully online, with over $26bn being expected annually.
“Successful completion of trial run in January 2024. Refined and intermediate products include polypropylene, naphtha, RCO, gasoline, diesel, and jet fuel. Steady state production phase commenced in March 2024.
“Ramping up production to reach 500kbpd (15 crude cargoes a month) by next August, 550kbpd by the end of the year, and 650kbpd by the first quarter of 2025. Gasoline production is to commence in July with sales from August. Annual revenue is projected to exceed $26bn,” Dangote stated.
He added that the refinery has dedicated loading gantries with 86 loading bays; dedicated marine facilities for offtake of crude and loading of petroleum products; 900-kilo tonnes per annum polypropylene plant, 36ktpa sulphur, and 585ktpa carbon black production.
During a tour of the refinery with journalists recently, Aliko Dangote, president of Dangote Industries said the refinery was fully online, with over $26bn being expected annually.
“Successful completion of trial run in January 2024. Refined and intermediate products include polypropylene, naphtha, RCO, gasoline, diesel, and jet fuel. Steady state production phase commenced in March 2024.
“Ramping up production to reach 500kbpd (15 crude cargoes a month) by next August, 550kbpd by the end of the year, and 650kbpd by the first quarter of 2025. Gasoline production is to commence in July with sales from August. Annual revenue is projected to exceed $26bn,” Dangote stated.
He added that the refinery has dedicated loading gantries with 86 loading bays; dedicated marine facilities for offtake of crude and loading of petroleum products; 900-kilo tonnes per annum polypropylene plant, 36ktpa sulphur, and 585ktpa carbon black production.
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