IN a groundbreaking development, Nigeria’s Dangote oil refinery has commenced tender processes to sell two fuel cargoes for export, marking a pivotal moment in the nation’s energy landscape. According to trading sources familiar with the matter who spoke to Reuters, this marks the first export initiative from the newly operational refinery.
Situated on a peninsula on the outskirts of Lagos, the commercial capital, the Dangote refinery stands as Africa’s largest, boasting an impressive nameplate capacity of 650,000 barrels per day. Built by Aliko Dangote, the continent’s wealthiest individual, the refinery represents a significant investment in Nigeria’s energy infrastructure.
Nigeria, historically reliant on fuel imports to meet domestic demands, is poised for a remarkable transformation with the $20bn Dangote refinery. The facility is positioned to shift the nation from a net importer to a net exporter of fuel, particularly to other West African countries, potentially reshaping power and profit dynamics within the industry.
The first cargo, comprising 65,000 metric tons of low-sulphur straight run fuel oil, has been awarded to Trafigura and is scheduled for loading by the end of February, as confirmed by three informed sources. Trafigura declined to provide comments on the matter.
Meanwhile, the second tender, involving approximately 60,000 tons of naphtha, is underway, with sources indicating that the tender is set to close on February 15. This move underscores Dangote refinery’s strategic push into the international market.
Sources familiar with the refinery’s operations had previously said that the facility is gearing up to supply its first fuel cargoes to the domestic market in the coming weeks, signalling the beginning of a new era in Nigeria’s energy sector.