In a bold move to increase its global footprint, Dangote Refinery has ramped up exports to Asia, capitalizing on the region’s rising demand for refined petroleum products. This expansion comes amid a challenging domestic environment, highlighting the refinery’s resilience and growing influence in the global energy sector.
Asia: A Key Growth Market
According to shipping data from analytics firm Kpler, Asia has emerged as the top destination for Dangote’s fuel oil exports in 2024. The refinery has focused particularly on Singapore, a global oil trading hub, which recently received a new shipment comprising 85,000 metric tons of low-sulfur straight-run fuel oil (LSSR) and 35,000 metric tons of slurry.
This shipment follows an initial export in June 2023 of approximately 124,000 metric tons of LSSR to Singapore, and another 157,000 metric tons delivered in July. These products are vital for the region’s shipping and refining industries, with LSSR commonly used in bunkering or as feedstock in the production of low-sulfur fuel oil (LSFO).
Diversifying Global Reach
Beyond Asia, Dangote Refinery has made strategic inroads into other major markets. It recently exported jet fuel to Saudi Aramco—the world’s largest energy company—and has shipped an estimated 1.7 million barrels of jet fuel to U.S. ports via six different vessels.
This broader global push strengthens Dangote’s position as a major player in international fuel trade and aligns with its long-term goal of becoming a leading global energy supplier.
Challenges at Home
Despite its international success, Dangote Refinery has faced hurdles domestically. A key challenge has been securing a steady supply of crude oil from the Nigerian National Petroleum Corporation (NNPC). Ongoing struggles with access to crude forced the refinery to source supplies internationally, delaying full-scale operations.
Further complications arose from a failed agreement with the Nigerian government to allow Dangote to buy crude using naira instead of foreign currency—an arrangement that could have eased local fuel costs.
A Strategic Vision for the Future
In spite of these setbacks, the refinery continues to expand its export capacity and product offerings. Its growing presence in Asia, the Middle East, and North America reflects a strategic commitment to global market integration, showcasing its ability to adapt and thrive even under complex regulatory and logistical conditions.
With its robust export strategy and commitment to refining excellence, Dangote Refinery is positioning itself as a dominant force in the global energy landscape, responding to the needs of international markets while navigating domestic challenges.
