Dangote refineries set to import crude oil from America this February—Bloomberg
The Dangote Refinery plans to import crude from the United States in the coming months.
According to a Bloomberg report, the transaction indicates how competitive American barrels have become in the international market.
Trafigura Group sold 2 million barrels of West Texas Intermediate (WTI) Midland to Dangote refinery for February-end delivery, the report quoted traders as saying.
This is the first time that the giant refinery has bought non-Nigerian crude, traders said.
However, they pointed out that it is not clear why a refinery in a large oil-producing country is buying from the US, but price is likely a factor.
“West Texas Intermediate Midland barrels tend to be cheaper than grades like Nigeria’s, which are priced relative to the North Sea grade Brent,” Bloomberg said.
The 650,000 barrels per day (bpd) capacity refinery was inaugurated by former President Muhammadu Buhari in May 2023.
The Dangote Refining Company had said the refinery is designed for 100 percent Nigerian crude “with the flexibility to process other crudes”.
The management had also said the refinery “can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries”.
The plant commenced operations with the production of diesel and aviation fuel, on January 12, 2024 — after receiving six shipments of crude.
