Dangote Refinery May 2024 Update

The Dangote Refinery, established by Africa’s richest man, Aliko Dangote, is seeking to purchase at least 24 million barrels of US crude oil over the next year.

The refinery has issued a term tender to buy two million barrels per month of West Texas Intermediate Midland crude, starting in July.

This move highlights the refinery’s significant role in global crude and fuel trading, positioning it as the largest refinery facility in Africa when fully operational.

The 650 kb/d Dangote Petroleum Refinery, Africa’s largest, has begun production, starting with diesel and aviation fuel.

This development ends years of anticipation for a plant that could boost local and regional refining capacity in a region heavily reliant on imported refined products.

Nigerian crudes are facing competition against American supply, as the Dangote Refinery turns to the US for crude sourcing.

The Nigerian government expressed concern about potential local crude oil supply shortfalls for various refineries, including Dangote’s, after their full readiness.

The Nigeria Upstream Petroleum Regulatory Commission (NUPRC) has mandated oil companies to prioritize supplying crude to domestic refineries facing difficulties in procuring it locally.

The Dangote refinery stands to benefit from this policy by sourcing crude oil from local suppliers rather than relying solely on imports

The Dangote Refinery’s production will have implications for fuel pricing and market dynamics in Nigeria .

The government has declined to set fixed prices for Dangote Refinery products, emphasizing the expansion of Compressed Natural Gas (CNG) usage .