Dangote refinery exports fuel to W’African countries – Bloomberg

The Dangote Petroleum Refinery has started exporting refined petroleum products to neighboring West African nations.

Bloomberg reported on Tuesday that a tanker had transported a consignment of gasoline from the Dangote Petroleum Refinery to waters off the coast of Togo, a neighboring West African nation.

The article cited data from Vortexa, Kpler, Precise Intelligence, a port report, and a ship-tracking tool.

According to the source, a CL Jane Austen recently departed west after loading over 300,000 barrels from Dangote.

Recall that last month, the chairman of the Ghana National Petroleum Authority (NPA), Mustapha Abdul-Hamid, stated that the nation is thinking of purchasing petroleum products from the Dangote refinery.

He disclosed it was in order to reduce the approximately $400 million it spends each month on more costly exports from Europe.

The chairman of NPA, Ghana, laid out this information while speaking at the OTL Africa Downstream Oil Conference in Lagos.

He claimed that by eliminating freight expenses, buying from Nigeria instead of Europe would lower the cost of other goods and services.

“If the refinery reaches 650,000bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices”, Hamid said.

Similarly, two weeks ago, newsmen exclusively reported that the refinery was going to start exporting fuel to Namibia, Angola, and South Africa.

It was said that four additional African nations—Niger Republic, Chad, Burkina Faso, and Central Africa Republic—had also begun talks with the refinery.

Stages of negotiations to begin lifting petroleum

Another reliable source disclosed that the management of the refinery with a capacity of 650,000 barrels per day was in the advanced stages of negotiations with the nations to begin lifting petroleum.

“I can confirm to you that talks are actually at the advanced stage with Ghana, Angola, Namibia, and South Africa, while the initial discussion is coming up with Niger, Chad, Burkina Faso, and the Central African Republic”, the source stated.

The petroleum product shipment is currently floating off the coast of Lome, which is a well-liked location for ship-to-ship transfers, according to the source.

Furthermore, the final destination of the cargo of the CL Jane Austen is uncertain.

Despite being off Togo, the region is frequently utilized for ship-to-ship transfers, so the gasoline may eventually be transported elsewhere.

“While the shipment is tiny in the context of the global gasoline market, it signals the ramp-up of Dangote’s production and the potential to export significant volumes of gasoline beyond Nigeria, which could upend regional markets”.

Last month, the refinery sent its first shipment of gasoline by sea to Lagos, a nearby commercial center.

It’s unclear if Dangote will export a significant portion of its gasoline production.

In accordance with the regulatory statute, the federal government last month reportedly ended the state-owned oil company’s monopoly on purchasing fuel from the plant for domestic use.

But it has permitted the ongoing importation of fuel from the US and Europe.

According to the report, a request for response from a Dangote representative was not answered.

About Dangote Petroleum Refinery

The Dangote Petroleum Refinery, located in the Lekki Free Trade Zone, Lagos, is a groundbreaking project that promises to revolutionize Nigeria’s oil and gas industry.

As the largest single-train refinery globally, it spans an impressive 2,635 hectares, six times the size of Victoria Island.

With a capacity to process 650,000 barrels of crude oil daily, this massive facility meets Nigeria’s entire domestic fuel demand and exports refined products.

The refinery boasts state-of-the-art technology, enabling it to produce Euro-V quality gasoline and diesel.

Its complexity index of 10.5 surpasses most refineries in the US and Europe, solidifying its position as a leading African refinery.

The project’s impact extends beyond the energy sector, providing 135,000 permanent jobs in the region and stimulating economic growth.

The refinery’s self-sufficient marine facility optimizes freight operations with two crude Single Point Mooring (SPM) systems and three product SPMs for exports.

Commencing production of diesel and aviation fuel in January 2024, the refinery received six million barrels of crude oil at its SPMs, located 25 kilometers from the shore.

President Aliko Dangote acknowledged President Bola Ahmed Tinubu’s support and encouragement, underscoring the project’s national significance.

As Nigeria’s first privately-owned refinery, Dangote Petroleum Refinery demonstrates the country’s ability to develop and deliver large capital projects.

This achievement positions Nigeria as a key player in the global oil and gas industry, reducing dependence on imported fuels and enhancing economic self-sufficiency.

The refinery’s success will have far-reaching implications for Nigeria’s energy security, economic growth, and regional influence.

For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook