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Dangote refinery is preparing to import crude from the US in the forthcoming months, signalling the increasing competitiveness of American barrels in the global market.
This is according to reports from Bloomberg.
Traders’ familiar with the matter disclosed that Trafigura Group has sold 2 million barrels of WTI Midland to the Dangote refinery for delivery by the end of February. This marks the first time the refinery buying non-Nigerian crude.
The exponential growth in US oil supply over the past decade has reshaped the global market, extending its influence to regions like Asia. Nigeria, whose economy heavily relies on petroleum exports, is particularly impacted by these transatlantic deliveries.
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The new 650,000 barrel-a-day oil refinery commenced operations earlier this month. Initially targeting a processing rate of 350,000 barrels per day, the refinery aims to gradually escalate production towards its full capacity.
While the refinery primarily sources domestic crude through a supply agreement with the trading arm of the state-owned NNPCL, it recently received its first shipment of Nigeria’s Agbami crude, facilitated by a trading unit of Shell. Subsequent deliveries included Nigeria’s Amenam, Bonny Light, and CJ Blend streams.
In addition to handling domestic feedstock, the recently inaugurated mega-facility is capable of processing various African crudes, along with supplies from distant sources such as the US and Saudi Arabia, as disclosed by the Dangote Group earlier this month.
Nigeria’s erratic crude oil production
- Nigeria has been battling shortage in crude oil production in the past few years occasioned by rising incidents of crude oil theft, divestment from oil majors and insecurity across the Niger Delta.
- In recent times, Nigeria has failed to meet its OPEC production quota of 1.75 mbpd for 2023 necessitating the oil cartel to cut its production quota for 2024. Perhaps, Nigeria’s erratic crude oil production levels might be responsible for Dangote refinery to look elsewhere for consistency in crude oil supply.
Import und Finish uns mit crazy Preis……Thats the Motive. 1200/1
The question ⁉️ is can this fuel ⛽⛽⛽⛽ price ever go down 👇!.
I am really confused! It means Nigeria will import crude oil. Me I no understand. Someone should explain to me, possibly in Fulfilde. I am Fulani Ba turenci.
Nigeria will buy crude oil from the USA, then send back refined products like diesel, petrol, and jet fuel to the USA and other places. This is just like what happens in other countries. For example, Nigeria sends crude oil to the Netherlands and gets petrol back for use at home.
This is a positive step. It shows Nigeria is doing more than just selling crude oil. Now, Nigeria is also making petrochemical products to sell to other countries or use at home.
The questions are ..if Nigerian crude is not enough for local production..and why Nigeria should export crude now it has the local capacity to refine its oil.
There’s no case of Saudi importing crude from other countries.
That’s a very good question. If we don’t have adequate supplies of crude to our local refinery, why do we have to still export crude to other countries. Let’s meet our domestic needs first before we think of selling out.
Ibrahim. It can get confusing. Our market and country is very volatile . Basically dangite will import yes but Nigeria local production is the main source . The US importation is a back up. To make sure any wagala locally they are covered . No time to explain any long story to lenders and off takers
That is the dubious attitude we’re talking about, I don’t believe it this is not really, if he import from US is better for him to sell it back to them, because Icf you refuse to follow us buy market we will also reject your market, do me I do you GOD no dey vex.
What a shame! If refined crude can no more be brought in because we have a great new plant to produce it, the saboteurs want to import the crude for it to work, because ‘business’ must go on as usual!
Like I don’t understand how you import what you have.its crazy.The importation automatically increases the price of products and potentially every other goods in Nigeria.its sad.really sad
They are doing everything in their minds to either increase or maintain the current price of fuel in the country, they don’t believe in reducing the fuel price for you and me.. Dangote has never been customer friendly in their business, remember how BUA cement reduced the factory price of cement but because of dangote and others like him the reduction is not making sense to the consumer. I never had any trust in this dangote refinery but I have a question, abeg where is the money CBN and NNPC invested in this dangote refinery? What is our stake in this refinery?
The crude oil will be imported from United State of Niger Delta …….you can’t fool everyone
Nigeria is a joke,expect the pms to soar to 970 per litre.
Professional thieves are starting the stealing games America does not export their crude refining outside lies and then bring back, we are not stupid,
Bobo Guise; so of all the places, it is the US you saw fit to buy crude oil from? What of Saudi Arabia or Russia or Qatar I mean places you can actually get crude more affordably? Is this why Antony Blinken came here? Dangote, please don’t further strangle us by wasting Nigeria’s so badly needed USD