Dangote Refinery Sets Sights on 2 Million Barrels of US Oil – Report

Nigeria’s newly constructed Dangote refinery in Lagos is making significant strides in its operational plans, as it seeks to purchase millions of barrels of US crude oil over the next year to support its increasing processing rates.

According to a report by Bloomberg on Thursday, the refinery has issued a term tender for the acquisition of two million barrels per month of West Texas Intermediate Midland crude for a duration of 12 months, commencing in July.

The plant, spearheaded by Africa’s wealthiest individual, Aliko Dangote, aims to secure a steady supply of crude oil to sustain its operations and meet its production targets. The tender, which closes on May 21, underscores the refinery’s commitment to optimizing its refining capacity and enhancing its contribution to the energy landscape in Nigeria and beyond.

In April, it was reported that the Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, is leveraging cost-effective oil imports from the United States, accounting for up to one-third of its feedstock as it commences production. Analysts anticipate that the refinery’s operations will have a significant impact on the gasoline market in the Atlantic Basin, not only in Nigeria but also across the region.

Alan Gelder, Vice President of Refining, Chemicals, and Oil Markets at Wood Mackenzie, highlighted the refinery’s potential to influence gasoline markets, emphasizing its role in transforming the fuel market landscape in Nigeria and beyond. As the refinery continues to advance its operations, its impact on the regional energy sector is expected to become increasingly prominent, heralding a new era in oil refining and distribution in West Africa.