The $20 billion Dangote Refinery is set to diversify its crude oil sources by importing two million barrels of WTI Midland from the United States, as reported by traders familiar with the matter.
This move, scheduled for delivery by the end of February 2024, marks the first time the refinery will be procuring non-Nigerian crude, highlighting the impact of the exponential growth in US oil supply on the global market.
Nigeria, heavily reliant on petroleum exports, is particularly influenced by these transatlantic deliveries.
The recently operational 650,000 barrel-a-day oil refinery, initially targeting a processing rate of 350,000 barrels per day, aims to gradually increase production toward its full capacity.
While the refinery primarily sources domestic crude through an agreement with the state-owned NNPCL’s trading arm, it recently diversified its crude sources with the arrival of Nigeria’s Agbami crude, facilitated by a trading unit of Shell.
Subsequent deliveries included Nigeria’s Amenam, Bonny Light, and CJ Blend streams.
The Dangote Refinery, having received the sixth batch of crude supplied by the Nigeria National Petroleum Corporation Limited (NNPCL) weeks ago, appears poised to commence production of refined petroleum products.