US Import Reduction: Dangote Refinery shifts focus to local producers of crude

The Dangote Refinery, with a capacity of 650,000 barrels per day, is shifting its focus away from importing crude oil from the United States, as it expects to receive a greater supply from Nigeria, according to a report by Bloomberg.
The plant is expected to source just over 80% of its crude oil from local suppliers in the third quarter of 2024, an increase from less than 75% in the previous quarter, according to data from Bloomberg and information from traders.
This is coming on the heels of the recent approval by the federal government to sell crude oil to the refinery in Naira to reduce pressure on the foreign exchange earnings and ease the mode of transactions for both Dangote and the government.
Aliko Dangote, the CEO of the refinery, has repeatedly lamented that his petrochemical plants have been unable to source crude from NNPC and international oil companies operating in Nigeria.
Accordingly, the refinery has had to rely on feedstock from the United States and Brazil to meet its demands.
At some point, one-third of its feedstocks were imported from the U.S., with Dangote insisting that the IOCs are attempting to scuttle the success of the refinery.
Meanwhile, recent development shows that Dangote is now cutting back importation from the United States with 80% of its crude oil demands will be sourced locally.
The refinery received six shipments of crude oil from the NNPC for next month, according to a company spokesman. Most of these shipments contain about one million barrels each.
Additionally, two more shipments from Nigeria and two million barrels of WTI Midland crude are expected to arrive in September, according to tanker-tracking data.

Source: nairametrics.com

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