Alhaji Aliko Dangote, President and Chief Executive of Dangote Group, has affirmed that the $20 billion Dangote Petroleum Refinery was specifically designed to process Nigerian crude oil and enhance its value domestically.
In a statement released by the refinery on Thursday, Dangote emphasized that while the facility has also been handling crude oil from Europe, the United States, and other regions, its primary focus remains on Nigerian crude. He questioned the need to shift from this core objective, despite the refinery’s current practice of refining various grades of oil.
Dangote highlighted ongoing efforts to address domestic crude oil supply challenges in Nigeria. The refinery’s operations have impacted crude oil flows, with a notable number of Nigerian cargoes staying within the country and US WTI Midland, a similar light, sweet grade, being imported. This shift could influence the market for light, sweet crude.
According to Commodity Insights, the refinery’s preference for WTI Midland crude has led to the signing of long-term supply contracts for this US grade due to its competitive pricing. The refinery has used WTI Midland crude to complement Nigerian supplies, accounting for 30% of the crude delivered through 18 cargoes.
The refinery’s operations have also affected crude flows in Europe, the largest consumer of light, sweet Nigerian crude. The statement noted that the refinery would continue to use Nigerian crude while exploring opportunities to supplement its supply with other grades, including Libyan, Angolan, and Brazilian crudes.
Rasool Barouni, Associate Director and head of Refining at S&P Global Commodity Insights, confirmed that the Dangote refinery is designed to handle a variety of light and medium crude grades, including Nigerian grades, with other West African grades as potential options.
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