Dangote Group’s President and CEO, Alhaji Aliko Dangote, has reaffirmed that the $20 billion Dangote Petroleum Refinery was designed to process Nigerian crude oil and add value to it within the country. Despite initial challenges with domestic crude oil supply, Dangote stated that the issues are being resolved and the refinery remains committed to its primary focus.
The refinery has already made an impact on crude flows, with dozens of Nigerian cargoes remaining in-country and US WTI Midland being imported to supplement Nigerian supply. This has tightened the light, sweet crude market, with the refinery’s diet consisting of WTI and lighter Nigerian crudes.
Dangote acknowledged that the refinery has also refined crude oil grades from Europe, the US, and other countries but emphasized that Nigerian crude remains the primary focus. The facility is designed to process a range of light and medium grades of crude oil, including Nigerian grades, and will broaden its feedstock sources with Libyan, Angolan, and Brazilian crude.
The refinery’s impact has been felt in other markets, particularly in Europe, with the US grade accounting for 30% of crude delivered to Dangote. OPEC has listed Dangote Refinery and Petrochemicals among the top diesel and jet fuel suppliers that will disrupt Europe’s oil and gas industry, positively impacting the Nigerian economy.
In a separate statement, the refinery clarified its stand on crude supply, emphasizing its commitment to receiving its full crude requirement from NNPC and IOCs. The refinery urged NUPRC to fully enforce the domestic crude supply obligation as mandated by the PIA.
