The Dangote Refinery and Petrochemical Company is increasingly sourcing crude oil from international suppliers as it gradually ramps up production, despite ongoing negotiations with the Nigerian National Petroleum Company Limited (NNPCL) over the naira-for-crude deal, set to expire on March 31, 2025.
According to a report by Bloomberg, the 650,000 barrels-per-day refinery has begun importing crude from various international markets, including the United States, Angola, and Algeria. Since the beginning of March, the refinery has received more than three million barrels of U.S. crude, alongside shipments from Angola and Algeria.
Recent data from Energy Aspects Ltd. indicates that crude deliveries to the Dangote refinery have surged to an average of 450,000 barrels per day in the past two weeks, a significant increase from 380,000 barrels per day in January and February. Senior refinery analyst Randy Hurburun noted that satellite monitoring shows a draw in crude stocks at the facility, suggesting a rise in refining activity.
Once fully operational in the first half of 2025, the Dangote Refinery will become Africa’s largest, surpassing even the biggest refineries in Europe with its 650,000 barrels-per-day capacity. The facility is already helping to alleviate Nigeria’s crude oil surplus and reduce the nation’s reliance on fuel imports.
Despite the rise in international crude sourcing, the Dangote refinery remains heavily reliant on Nigerian crude. Last month, it imported over ten million barrels of local feedstock, and the NNPCL reported supplying 48 million barrels since the start of their agreement in October.
Industry analysts point out that the refinery’s crude sourcing strategy will be largely influenced by price competitiveness. Ronan Hodgson, an analyst at FGE, highlighted that U.S. West Texas Intermediate (WTI) crude, known for its light-sweet nature, remains a competitive option, alongside other West African grades.
As the refinery continues to diversify its crude supply, it may also explore crude from other regions such as Libya, the North Sea, and the Mediterranean, depending on market dynamics. The refinery’s strategic approach to sourcing will depend on both economic factors and the terms of its agreements with suppliers.
