Dangote Refinery has launched a tender to procure an additional 6 million barrels of US crude oil, significantly boosting American feedstock inflows. This move comes after the refinery recently purchased 5 million barrels of US crude, with deliveries scheduled for next month and September, according to a Bloomberg report on July 11.
The refinery, which has already acquired over 16 million barrels of West Texas Intermediate (WTI) crude this year, is expected to increase its proportion of US crude purchases in August and September based on new supply tenders seen by Bloomberg.
“For Nigeria and Dangote, the use of US crude likely reflects where there are spare barrels available to buy in the world and the most competitive price,” the Bloomberg report stated.
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The Dangote Refinery, billed as a critical component in Nigeria’s efforts to reduce reliance on foreign fuel supplies, predominantly operates on local crude that can be quickly transported from offshore terminals. Tracking data indicates that the refinery received over 41 million barrels of feedstock in the first half of the year during its test runs and gradual increase in processing rates, with about a quarter of this supply being American crude.
The latest purchase of US crude oil is part of a broader strategy by the refinery to increase its inflows of American feedstock. In May, the refinery planned to procure 24 million barrels of US crude over a year.
This strategic move is seen as pivotal in enhancing Nigeria’s local refining capacity and diminishing its dependence on imported fuel. The Dangote Refinery, situated near Lagos, is poised to play a significant role in achieving this national objective.
