The Dangote refinery has announced plans for its first export and sale of petroleum products, with sources indicating that the refinery is preparing to ship its first fuel cargo by the end of February.
Following the Port Harcourt refinery’s commencement of production, which received 475,000 barrels from Shell, the Dangote Refinery, known as the world’s largest single train refinery, is gearing up to export its first two fuel cargoes. This marks a significant milestone for the refinery that has captured industry attention.
According to a Reuters report, insiders revealed that the first shipment, consisting of 65,000 metric tons of sulphur straight-run fuel oil, awarded to Trafigura, is scheduled for loading at the month’s end. Another tender for roughly 60,000 tons of naphtha is set to close on February 15, 2024.
This move comes amidst reports that the refinery is ready to start distributing its first fuel cargoes domestically within weeks, with major Nigerian oil marketers having registered to lift and distribute products from the $20 billion facility. The Major Oil Marketers Association of Nigeria (MEMAN) confirmed their registration, planning to begin fuel distribution as soon as commercial terms are settled.
Furthermore, the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Outlets Owners Association of Nigeria (PETROAN) have also engaged in discussions with the refinery regarding product lifting terms.
The report identified seven major marketers, including 11 Plc, Conoil Plc, Ardova Plc, MRS Oil Nigeria Plc, OVH Energy Marketing Limited, Total Nigeria Plc, and NNPC Retail. Energy Policy expert Adeola Yusuf commented on the development, noting that while the Dangote refinery will not subsidize petroleum products, its operations could lead to a slight price adjustment in the local market.
In addition, the Port Harcourt refinery is poised to begin operations after receiving a crude oil shipment from Shell Petroleum Development Company Limited, marking a significant step forward after years of inactivity and rehabilitation efforts.
Shell highlighted the achievement of resuming crude oil supply to the Port Harcourt Refinery as a pivotal moment for the industry and Nigeria, praising the collaborative effort to ensure safe and efficient operations.
Finally, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has mandated oil companies in Nigeria to supply approximately 483,000 barrels of crude oil daily to local refineries over the next six months, starting January 2024. This directive aims to support domestic consumption and the start-up of several local refineries, including the Dangote refinery and Nigeria’s three state-owned refineries in Port Harcourt, Warri, and Kaduna.
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