The Dangote refinery, Africa’s biggest, received 10 Nigerian crude cargoes in March, double from February, as Nigeria aims to secure enough fuel supply amid the global crude and refined product crunch as a result of the war in the Middle East.
Dangote, the biggest refinery in Africa which began operations in 2024, has started exporting fuel to regions other than West Africa. The refinery started up in January 2024 with the launch of diesel and naphtha production and began producing gasoline in September 2024.
Dangote’s CEO David Bird told local outlet Arise TV last month that the refinery receives only five local cargoes out of the 13-15 crude cargoes previously agreed.
“We try and maintain some stability within a commercially acceptable range… but all our cost inputs—from crude to freight and insurance—are impacted,” Bird told Arise.
At a press briefing on Monday, Aliko Dangote, Africa’s richest person and owner of the refinery, said the processing plant received 10 cargoes of Nigerian crude in March, up from five in the previous months.
“Last month, they gave us six cargoes for naira and four cargoes for dollars,” Dangote told reporters, as carried by Bloomberg.
Dangote, which has the capacity to process 650,000 barrels per day (bpd) of crude into fuels, needs 19 cargoes to operate at full capacity.
The refinery has been sourcing U.S. and other African crude to top up its crude supply.
However, the cost of crude for the refinery has escalated along with the surge in international crude oil prices, as Dangote relies on crude imports, too.
“The high crude cost is compounded by the fact that Nigeria upstream producers have failed to supply crude oil to the refinery as required under the PIA, forcing us to source a substantial portion through international traders who charge an additional premium,” Dangote’s management said on March 5, days after the war in the Middle East started.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com
- Iraq Prepares to Ramp Up Production After War Disruption
- India Turns to Venezuelan Crude as Middle East Supply Falters
- European Gas Futures Jump 3% as Trump’s Iran Strike Deadline Nears
