Nigeria’s Dangote oil refinery, the largest in Africa with a capacity of 650,000 barrels per day, has issued tenders for the sale of two fuel cargoes for export. This marks a significant milestone as the refinery, built by Africa’s richest man Aliko Dangote, becomes operational and sets Nigeria on a path to becoming a net exporter of fuel to other West African countries.
The $20 billion refinery, located on the outskirts of Lagos, is expected to reduce Nigeria’s reliance on fuel imports and potentially shift power dynamics within the industry. The move signifies a major step towards transforming Nigeria into a key player in the regional fuel market.
The first cargo, comprising 65,000 metric tons of low-sulphur straight run fuel oil, has been awarded to Trafigura and is scheduled to load at the end of February, according to sources familiar with the matter. Trafigura, when approached for comment, declined to provide a statement.
The second tender is for approximately 60,000 tons of naphtha, with the tender set to close on February 15, as per information from three sources. Last week, sources had informed Reuters that the refinery was gearing up to deliver its initial fuel cargoes to the domestic market within weeks.
This development underscores the potential for Nigeria, historically a fuel-importing nation, to emerge as a significant exporter in the West African region. The Dangote oil refinery’s operationalization is poised to have far-reaching implications for the country’s energy landscape, opening new avenues for revenue and influence in the regional fuel sector.
Source: Reuters
