Nigeria’s Dangote Refinery to export first fuel cargoes

LAGOS, February 15, 2024 – Nigeria’s Dangote Refinery has placed its first two cargoes on the market, sources told Reuters on Wednesday, marking an important milestone for the USD 19-billion mega-project.

The refinery has issued tenders for a 65,000-tonne cargo of low-sulphur fuel oil and 60,000 tonnes of naphtha. The first cargo is due to load at the end of February and has been awarded to Trafigura. The tender for the second is due to close on Thursday.

The Dangote Refinery was commissioned in May 2023 after spending more than 10 years under development. With nameplate capacity of 650,000 bopd, it is one of the largest single-train refineries in the world and a bid to relieve Nigeria from its reliance on expensive fuel imports.

Nigeria’s spend on petroleum products has grown rapidly in recent years, reaching USD 23.3 billion in 2023, according to the Central Bank of Nigeria, with imports coming mainly from the Netherlands, Belgium, Norway, India and the UK. At full capacity, Dangote is expected to meet 100% of the Nigerian requirement of refined products and have a surplus for export, implying a huge potential shift in trade dynamics.

Dangote received its first oil delivery from Shell International Trading and Shipping Company in December 2023.

Read our latest insights on: