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Nigeria - July 12, 2024

Dangote Refinery Secures 5 Million Barrels of US Crude, Plans for More

Dangote Refinery has purchased 5 million barrels of US crude oil, scheduled for delivery in August and September, Bloomberg reports. The refinery has also initiated a tender process to acquire an additional 6 million barrels of American crude for September.

So far this year, Dangote Refinery has bought over 16 million barrels of West Texas Intermediate (WTI) crude oil. According to Bloomberg, the refinery may increase its US crude purchases in August and September, as indicated by the new supply tenders.

The report suggests that the decision to use US crude likely reflects the availability and competitive pricing of these barrels. The refinery aims to reduce Nigeria’s dependence on foreign fuel supplies, primarily running on local crude that can reach the plant from offshore terminals within days.

Tracking data shows that the refinery took in more than 41 million barrels of feedstock in the first half of the year, completing test runs and gradually increasing processing rates. About a quarter of this feedstock has been American supply.

With this latest purchase, the influx of American feedstock is expected to rise significantly. In May, the refinery planned to buy 24 million barrels of US crude over the course of a year.