Dangote Refinery Set to Ship Out Inaugural Fuel Consignments

The Dangote Refinery, boasting a formidable capacity of 650,000 barrels per day, has reached a pivotal juncture as it prepares to venture into its inaugural fuel exports. This momentous step forward has been meticulously orchestrated, with the refinery taking definitive strides by initiating tenders for the sale of two fuel cargoes earmarked for export. The first cargo, comprising 65,000 metric tons of low-sulphur straight-run fuel oil, has been allocated to Trafigura and is slated for loading by the conclusion of February. While Trafigura has secured the bid for this cargo, confirmation has been received from a refiner that they were approached by Trafigura regarding the cargo, albeit with scant additional details.

Concurrently, the spotlight shines on the second tender, encompassing approximately 60,000 tons of naphtha, according to insiders familiar with the matter. Among these sources, two have underscored that the tender's deadline is firmly set for February 15th. Notably, these developments unfold against the backdrop of Dangote Petroleum Refinery's earlier foray into diesel and aviation fuel production, a significant milestone achieved in January that further propels its operational journey forward.

The announcement heralding the commencement of fuel exports was disseminated by the company via an official statement. According to the statement, the refinery has thus far welcomed six million barrels of crude oil at its two Single Point Moorings (SPMs), strategically situated 25 kilometers offshore. Of particular significance is the fact that the inaugural crude delivery transpired on December 12, 2023, with subsequent deliveries continuing in succession, culminating in the receipt of the sixth cargo on January 8th.

The maiden cargo that graced the confines of the refinery emanated from the Agbami crude grade, procured from Shell International Trading and Shipping Company Limited (STASCO). As a stalwart in the realm of trading, STASCO commands a formidable presence, orchestrating transactions that surpass the 8 million-barrel mark on a daily basis, both domestically within Nigeria and on the global stage. The involvement of STASCO in this pivotal juncture underscores the intrinsic importance of the refinery's operations. Furthermore, accentuating the forward momentum towards the commencement of refined petroleum product production, the refinery received an additional one million barrels of crude bonny light, a contribution facilitated by the Nigeria National Petroleum Company (NNPC Ltd).

In summation, these developments epitomize significant leaps forward for the Dangote Refinery, positioning it as a vanguard poised to make substantial inroads not only within the domestic market but also on the global energy landscape through its pioneering export initiatives.