By Abimbola Ogunnaike
Nigeria’s newly constructed Dangote refinery, Lagos is planning to purchase millions of barrels of US crude oil over the next year as it ramps up processing rates, Bloomberg reports on Thursday, 16 May, 2024.
According to the report, the plant has issued a term tender for the purchase of two million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July.
“The plant, built by Africa’s richest man, Aliko Dangote, issued a so-called term tender for the purchase of two million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July, according to a document seen by Bloomberg. The tender closes on May 21,” the report stated.
Recall that last April the 650,000 barrels per day Dangote Petroleum Refinery is taking advantage of cheaper oil imports from the United States for as much as a third of its feedstock as it starts production.
An earlier report by Bloomberg on April 18 stated that the plant has been shipping products in weeks while readying two units to enable gasoline (petrol) output that will deliver a long-promised transformation of the fuel market both in Nigeria and the region. It attributed this to analysts.
“Dangote is going to influence Atlantic Basin gasoline markets this summer and for the rest of the year,” said Alan Gelder, Vice President of Refining, Chemicals, and Oil Markets at the consultancy firm, Wood Mackenzie.
