Dangote gets more crude supply from US, Angola, others

Naijaonpoint Media gathered that the Dangote Refinery and Petrochemical Company is actively securing crude oil from international suppliers as it ramps up production. Reports indicate that the refinery is negotiating a naira-for-crude deal with the Nigerian National Petroleum Company Limited (NNPCL) ahead of its current contract’s expiration in March 2025.

Dangote Refinery Secures More Foreign Crude

Despite being one of Africa’s largest refining facilities, the Dangote Refinery has increasingly turned to foreign markets for crude oil supply. Sources reveal that the refinery has imported oil from Algeria, Angola, and the United States in recent months. Notably, over three million barrels of U.S. crude have reportedly been delivered to the refinery since the beginning of the month.

Industry analysts at Energy Aspects Ltd. report that crude deliveries to the refinery have surged, rising from an estimated 380,000 barrels per day in January and February to approximately 450,000 barrels per day in the last two weeks.

According to Randy Hurburun, a senior refinery analyst at Energy Aspects Ltd., satellite monitoring indicates a recent draw in crude stocks at the Dangote plant, suggesting increased refining activity.

Nigeria’s Oil Surplus and Refinery Expansion

As the Dangote Refinery gears up to operate at full capacity by the first half of 2025, its impact on Nigeria’s oil industry is becoming more evident. The facility, designed to refine 650,000 barrels per day, is expected to significantly reduce the country’s dependence on fuel imports while positioning itself as Africa’s largest refinery—surpassing any single refinery in Europe.

Despite its growing reliance on foreign crude, data from Bloomberg indicates that the Dangote Refinery continues to source a substantial amount of Nigerian crude. In the past month alone, it received over ten million barrels of local feedstock.

Analysts suggest that the refinery’s crude sourcing strategy will remain driven by price competitiveness. Since entering a crude supply agreement with Dangote in October, NNPCL has supplied the refinery with approximately 48 million barrels.

Ronan Hodgson, an analyst at FGE, stated:

“WTI will remain attractive for the refinery due to its light-sweet nature and pricing advantages over local West African grades. The Atlantic basin provides multiple alternatives, but the final decision will always depend on economic factors and contract terms.”

Given market conditions, the refinery may also explore crude oil imports from other regions such as the North Sea, the Mediterranean, and Libya.

Fuel Market Shakeup: Importers Seek Solutions

Meanwhile, intense competition between NNPC Retail Ltd. and the Dangote Refinery is driving down petrol prices, causing concerns among fuel importers. Reports suggest that importers are struggling to remain profitable and are now seeking alternative markets to mitigate growing losses.

According to industry insiders, the market’s unpredictability has left many fuel marketers grappling with unexpected financial setbacks. Companies with large inventories in tank farms and pending gasoline shipments are now reassessing their strategies to navigate shrinking profit margins and shifting global dynamics.

As Dangote’s refining operations continue to expand, its growing influence on Nigeria’s energy market will likely reshape crude sourcing strategies and fuel pricing in the country.