In order to augment the domestic supply and increase production rates, Dangote Refinery has imported crude from the United States, Algeria, and Angola.
In March, Nigeria’s Dangote refinery is augmenting its processing rates by receiving more than 3 million barrels of American crude and other international cargoes, in addition to domestic deliveries, as local petroleum sales become increasingly insufficient.
Bloomberg reported on Wednesday that the refinery, which has not yet reached maximum capacity, is anticipated to continue importing petroleum from a variety of sources, including the Atlantic basin, in accordance with price competitiveness.
The refinery has already reduced Nigeria’s petroleum importation and surplus of Nigerian crude, and it could process 650,000 barrels per day at maximum capacity, making it the largest oil refinery in Africa, according to the report.
The import and export outlook of the region are being impacted by the incremental ramp-up of Nigeria’s Dangote refinery, which is importing feedstock from around the globe to supplement its domestic deliveries.
Since the beginning of the month, it has received over 3 million barrels of American petroleum. In recent weeks, the refinery has also made purchases closer to home, importing a consignment of Angola’s Pazflor grade and a cargo of Algeria’s Saharan Blend from Glencore Plc.
Since its inception in early 2018, the massive facility located near Lagos has been increasing its processing rates; however, it has not yet achieved its maximum capacity. However, an analyst at Energy Aspects Ltd. has reported that flow rates have been increasing thus far this month.
“Our satellite monitoring indicates a recent decrease in crude stocks at the refinery, which suggests that runs are likely to increase,” stated Randy Hurburun, senior refinery analyst at the consultancy.
Additionally, crude deliveries have averaged 450,000 barrels per day over the past two weeks. Over the months of January and February, the researcher anticipates that the average number of barrels produced was 380,000.
The Dangote refinery is the largest in Africa and dwarfs any of Europe’s facilities, capable of producing 650,000 barrels per day when operating at maximum capacity.
The refinery has already reduced a surplus of Nigerian petroleum and revolutionized the country’s fuel imports.
According to tanker-tracking data compiled by Bloomberg, the Dangote refinery is importing crude oil from the United States, Angola, and Algeria. Bloomberg reported that a request for comment from a Dangote spokesperson was not promptly responded to.
According to Bloomberg’s tanker-tracking data, the refinery operates primarily on local feedstock, importing over 10 million barrels of Nigerian crude last month, despite the rise in overseas acquisitions.
The Nigerian government is currently in negotiations with Dangote to extend the contract for the sale of petroleum in the local currency. According to the Nigerian National Petroleum Company Limited (NNPC), it has supplied 48 million barrels since the agreement was initiated in October.
Ronan Hodgson, an analyst at FGE based in London, stated that price competitiveness will remain the primary factor in determining Dangote’s crude imports. “WTI will remain a desirable grade for the refinery due to its price competitiveness with local West Africa grades and its light-sweet nature,” he stated.
According to Hurburun of Energy Aspects, other grades in the Atlantic basin, such as Sharara and Es Sider in Libya and Oseberg, Ekofisk, and Troll in the North Sea, could be viable competitors at the appropriate price.
“The economics and terms on which they obtain it are the determining factors, but the Atlantic basin offers numerous viable alternatives, such as the Mediterranean and North Sea,” Hurburun stated.
