Dangote Refinery, with a value of $20 billion, plans to import crude oil from the United States
In the upcoming months, the $20 billion Dangote Refinery in Lagos has finalized arrangements to import crude oil from the United States.
Traders acquainted with the situation have already revealed that Trafigura Group has completed the sale of two million barrels of WTI Midland to the Dangote Refinery, with delivery expected by the end of February 2024.
As reported by Bloomberg, this signifies the first instance where the refinery will be procuring crude oil from sources outside Nigeria. The surge in US oil production over the past decade has significantly reshaped the global market, extending its influence to regions like Asia.
Nigeria, a nation heavily reliant on petroleum exports for its economy, is notably affected by these transatlantic deliveries.
The newly operational 650,000 barrel-per-day oil refinery started its operations earlier this month. Initially targeting a processing rate of 350,000 barrels per day, the refinery aims to progressively increase production towards its full capacity.
While the refinery primarily secures domestic crude through a supply agreement with the trading arm of the state-owned NNPCL, it recently received its inaugural shipment of Nigeria’s Agbami crude, facilitated by a trading unit of Shell. Subsequent deliveries included Nigeria’s Amenam, Bonny Light, and CJ Blend streams.
Recall that Dangote Refinery appeared poised to initiate the production of refined petroleum products upon the reception of the sixth batch of crude barrels supplied by the Nigeria National Petroleum Corporation Limited, NNPCL, a few weeks ago.
The latest delivery of one million barrels of Agbami crude via MT ALMI SUN marked the final cargo, completing the initially scheduled consignment of six million barrels to be supplied to the Dangote facility, signaling the commencement of operations for the world's largest single-train refinery.
Approximately one month ago, Dangote Refinery received its initial shipment of one million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited, STASCO, a prominent trading company in Nigeria and globally, dealing in over 8 million barrels of crude oil per day.
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