Dangote Refinery in Lagos is looking to purchase millions of barrels of US crude over the next year as it ramps up processing rates, a sign of the challenges that Africa’s largest producer faces in lifting its own oil output.
The refinery, built by Africa’s wealthiest individual, Alhaji Aliko Dangote, has put out a term tender seeking to purchase two million barrels monthly of West Texas Intermediate Midland crude for a duration of 12 months, starting in July, Bloomberg reported on Thursday.
The tender, as per a document viewed by the paper, is set to close on May 21.
In April, it was reported that despite Nigeria’s position as a leading crude oil producer, the Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, is capitalizing on cost-effective oil imports from the US, accounting for up to one-third of its feedstock as production begins.
A prior report from Bloomberg on April 18 indicated that the refinery has begun shipping products while preparing two units to facilitate gasoline output, which is anticipated to significantly impact the fuel market in Nigeria and the surrounding region, according to analysts.
Alan Gelder, Vice President of Refining, Chemicals, and Oil Markets at consultancy firm Wood Mackenzie, remarked, “Dangote is going to influence Atlantic Basin gasoline markets this summer and for the rest of the year.”