Dangote Petroleum Refinery, amidst the fuel scarcity in Nigeria, has issued tenders to sell two fuel cargoes for export, originating from the newly commissioned refinery.
Nigerians have been eagerly looking forward to the release of products from the $20 billion Dangote refinery since it was inaugurated in May last year by former President Muhammadu Buhari.
However, though loading details were not immediately available, sources told Reuters that the refinery was preparing to deliver its first fuel cargoes to the domestic market within weeks. Media reports have indicated that lingering regulatory approvals have stalled Dangote Petrochemical Refinery’s plan to release aviation fuel (Jet A1) and diesel for sale in the Nigerian market in January.
The report stated that one week after the January 31 timeline set by the management of Africa’s largest refinery to begin selling its petroleum product in the local market, the refinery was still battling to cross the hurdles of the several layers of regulatory approvals.
It stated that the development came almost a month after the refinery began the production of petroleum products at the expansive facility.
On January 12, 2024, Dangote refinery announced that it had commenced the production of automotive gas oil, popularly called diesel, and aviation fuel, or JetA1.
The refinery, Africa’s largest, with a nameplate capacity of 650,000 barrels per day, was built on a peninsula on the outskirts of the commercial capital Lagos by the continent’s richest man, Aliko Dangote.
Nigeria has for years relied on expensive imports for nearly all the fuel it consumes, but the $20 billion refinery is set to turn it into a net exporter of fuel to other West African countries, creating a huge potential shift in power and profit dynamics in the industry.
According to Reuters, three sources have revealed that Dangote has awarded the first cargo, consisting of 65,000 metric tonnes of low-sulphur straight-run fuel oil, to Trafigura. The loading of this cargo is scheduled to take place at the end of February. Trafigura declined to comment on the matter.
