Dangote refinery has commenced export of its refined product providing more revenue opportunities for the mega refinery.


This is even as the refinery has placed new order for crude oil totalling about 24 million barrels over the next 12 months

For the first time, a Cargo of Low- sulphur Straight Run Fuel Oil (LSSR) produced at the 650,000 barrels a day plant has reached the European market.

The 90,000 tons cargo was loaded at Dangote’s terminal in Lekki on 25 April and discharged in Rotterdam on 13 May, according to data from trade analytics firm Kpler.

The cargo will likely be used as a blendstock to produce very-low sulphur fuel oil (VLSFO), market participants said.

Roughly 72pc of the fuel oil exported from Dangote has been delivered to the US since the refinery offered its first LSSR export tender mid-February. A total of just under 620,000 tons has been delivered so far.

Another LSSR shipment of 83,400 tons departed the refinery on 7 May, according to trade analytics firm Vortexa. It is scheduled to arrive in France on 22 May, but market participants say this is unlikely to be the cargo’s final destination.


The LSSR price assessments on a fob Amsterdam-Rotterdam-Antwerp (ARA) basis have stayed at a $5/bl premium to front-month Ice Brent crude futures this week, narrowing from an 18-month high of $7.50/bl in mid-April.

Maintenance work that began in the first quarter affected fluid catalytic cracking (FCC) units at some refineries.

The FCCs take LSSR and low-sulphur vacuum gasoil to increase gasoline yields.

Meanwhile, Dangote refinery has placed new order for crude oil totalling about 24 million barrels over the next twelve months.

The refinery is seeking to buy millions of barrels of US crude over the next year as it ramps up processing rates, an indication Nigeria’s current output may not sustain its operations.

Nigeria has been unable to meet its quota from the Organization of Petroleum Exporting Countries(OPEC), for at least a year.

The nation pumped about 1.45 million barrels a day of crude and liquids in April, still far below its estimated production capacity of 2.6 million barrels a day. Crude theft, aging oil pipelines, low investment, and divestments from oil majors operating in Nigeria have all contributed to declining production.


Dangote refinery had issued a term tender for the purchase of 2 million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July, according to a document seen by Bloomberg. The tender closes on May 21.

The call for US oil highlights how influential the plant will be in global crude and fuel trading.

It also reflects Nigeria’s struggle to lift its own crude production, which remains well below theoretical capacity, as well as Dangote’s willingness to tap cheaper supplies than it can find at home.

“Supply of Nigerian crude is insufficient or unavailable and sometimes unreliable,” said Elitsa Georgieva, executive director at Citac, an energy consultancy specialising in the African downstream sector. “WTI on the other hand, is available, with reliable supply and competitively priced.”

Buying different feedstocks also provides flexibility and optionality for the refinery, so the tender makes economic sense for Dangote, Georgieva said.


To ensure enough local supply to the giant 650,000 barrel-a-day Dangote refinery, the Nigeria Upstream Petroleum Regulatory Commission, (NUPRC) released new draft rules last month that will compel its oil producers to sell crude to domestic refineries.

The plant, currently running at about half capacity, is taking advantage of cheaper US oil imports for as much as a third of its feedstock.

Since the start of this year, it has received at least one supertanker carrying about two million barrels of WTI Midland each month. An official at Dangote declined to comment.

https://leadership.ng/dangotes-refined-product-hits-european-market-secures-crude-oil-from-u-s/

Some set of people will be sad

Let Nigeria have enough fuel for Nigerians is most important

Hateful elements and society dregs said Dangote was building refinery because of niger delta oyel. I wonder if countries like India also built refinery because of niger delta oyel. They insult Dangote for living, now insult him for siphoning Niger delta oyel. Irritating things.

Hmm...

Chai....

See as Tilumbu supporters just exposed their ignorance. How can you be celebrating Dangote exporting products when you can't buy locally.

Truly all these Agbado supporters are dumb

Reality3080... come and share this my post...

Richtaiwo:
Hateful elements and society dregs said Dangote was building refinery because of niger delta oyel. I wonder if countries like India also built refinery because of niger delta oyel. They insult Dangote for living, now insult him for siphoning Niger delta oyel. Irritating things.

Their behavior is so irritating.

Dangote should also acquire a prospecting liscence and drill his own crude oil.I just wonder why the country has not compelled the oil companies to build their own refineries even if small once,

rantingpigs:
Chai....

See as Tilumbu supporters just exposed their ignorance. How can you be celebrating Dangote exporting products when you can't buy locally.

Truly all these Agbado supporters are dumb

Reality3080... come and share this my post...

People that don't understand basic economics.

He has Intl loans to repay and can sell to them to earn forex for that purpose. Govt should be greatful for sustainable employment he has created.

After floating the Naira and wiping off the artificial billions of usd in his wealth, he deserves a free hand.

This yahoo boy will never relent. He will just continue scamming ignorant, greedy oyibo investors and Bulaba loving Nigerians. Chai, deris God O!

Lizzysamuel:


Are you insane?

Sad over what?

That Dangote Refinery is yet to refine a spoon of PMS?

Or that he's buying crude from US when his country is OPEC?

Or that he's exporting sulphur oil, when it should be charity ahome?

Are you guys this dumb?

He just proved to us that truly, one MUST be brainless to be a BATerian, agbadorian or Agbadoist.

Last year, they polluted the air with their propaganda that dangote will crash the price of pms.

He is celebrating the buying of 24million barrels from the USA and the selling of "PMS" in Europe by dangote. I tell you that these guys abhor Nigeria
They do not wish this country any good.

Do they understand economics? Sorry, no brains to do so.

Lizzysamuel:


Are you insane?

Sad over what?

That Dangote Refinery is yet to refine a spoon of PMS?

Or that he's buying crude from US when his country is OPEC?

Or that he's exporting sulphur oil, when it should be charity ahome?

Are you guys this dumb?

Moreso, Dangote Refinery is like Viju milk. It's a private company moda4ka.

sadist

Paraman:
Some set of people will be sad

yes oh, naa those thiefing politicians pressing the poor Nigerians neck

rantingpigs:
Chai....

See as Tilumbu supporters just exposed their ignorance. How can you be celebrating Dangote exporting products when you can't buy locally.

Truly all these Agbado supporters are dumb

Reality3080... come and share this my post...

They are despicable to say the least.
Imagine rejoicing that dangote will buy crude oil from the USA and sell his products in Europe

These guys abhor this country. You can imagine the im-p-s we share country with. No wonder they always support overtly corrupt, nepotistic, selfish, self-serving, etc leaders

I no

Gopd

O

Charity begins abroad for Dangote after securing cheap dollars from the CBN

Yet there’s fuel scarcity in nigeria
Shege pro max

Ygh

Where is the fuel in Nigeria from Dangote Refinery?

Nigeria you better get the Port Harcourt And Warri Refineries up and running. I won’t say much.

Wow

After seeing this, I suddenly became so motivated and it changed my whole life, now I'm a successful person and became trillionaire at a very young age.

Because of this, I'm an engineer, pilot, medical doctor, architect and an astronaut. I got 20 Olympic gold medals, 10 Oscars, 8 Grammys , 3 Nobel prize award. I was honored with GCFR, GCON, MFR, MON on the same day.

Next year I'm planning to buy moon. It all happened because of this.

Lizzysamuel:


Are you insane?

Sad over what?

That Dangote Refinery is yet to refine a spoon of PMS?

Or that he's buying crude from US when his country is OPEC?

Or that he's exporting sulphur oil, when it should be charity ahome?

Are you guys this dumb?

Moreso, Dangote Refinery is like Viju milk. It's a private company moda4ka.

You get time they reply Zone B or Bateria.
Don’t you know those people brain 🧠 are filled with Agbado?