In a significant move that signals the operational launch of the Dangote Petroleum Refinery, tenders have been initiated for the sale of two fuel cargoes for export. This development marks a crucial milestone for Nigeria, eagerly anticipated by its citizens, aiming to reduce reliance on costly fuel imports.
After facing delays in product releases due to regulatory hurdles, the refinery has now begun production of key fuel products including Automotive Gas Oil (diesel) and aviation fuel (Jet A1). This progress positions Nigeria to potentially transition into a net fuel exporter within the West African region, altering the energy dynamics significantly.
The first cargo, comprising 65,000 metric tonnes of low-sulphur straight run fuel oil, has been awarded to Trafigura, with loading scheduled by the end of February. Meanwhile, the second tender, for approximately 60,000 tonnes of naphtha, is open until February 15.
While the refinery’s current focus lies on producing basic fuel products like fuel oil and naphtha, it’s anticipated that additional time will be required for upgrading units to come online for more refined processes. Since December of the previous year, the refinery has been procuring crude oil, primarily from Nigeria’s state-owned oil firm NNPC Ltd. Additionally, it has secured US oil, with an anticipated arrival of two million barrels of US WTI Midland expected in early March.
The successful initiation of fuel exports signifies a significant leap forward for the Dangote Petroleum Refinery and holds immense potential to reshape Nigeria’s energy landscape. This move positions Nigeria as a key player in the regional fuel market, promising to bolster its standing in the global energy sector.
