Dangote Refinery to Ditch Crude Imports by December, Shifts Focus to Local Supply
The Dangote Petroleum Refinery is set to end its crude importation by December 2025, marking a significant milestone in its operations. According to Devakumar Edwin, Vice President at Dangote Industries in a Bloomberg report, the refinery plans to transition to 100% local crude supply, leveraging improved relations with Nigerian oil traders and the government to ensure a steady supply of domestic crude.
Currently, the refinery sources 53% of its crude from domestic producers and 47% from the United States. However, with contracts with foreign crude suppliers set to expire, the refinery will increasingly rely on local crude to meet its feedstock needs.
Edwin noted that the company has imported crude from various countries, including Brazil, Angola, Ghana, and Equatorial Guinea, but expects to transition fully to local crude before the end of the year. The refinery, which has a capacity of 650,000 barrels per day, is currently processing 550,000 barrels of crude per day.
In June, the plant received about half of its crude from local producers, and this trend is expected to continue as domestic suppliers fulfill their obligations and increase their sales to the refinery. The Dangote Refinery is scheduled to take five cargoes from the Nigerian National Petroleum Company Limited in July and August, with each shipment holding almost a million barrels of crude.
The move is part of the refinery’s strategy to reduce its reliance on imported crude and take advantage of Nigeria’s vast oil reserves. By leveraging local crude supply, the refinery aims to optimize its operations, reduce costs, and increase its competitiveness in the global market.
The gradual ramp-up of the refinery has already made Nigeria a net exporter of petroleum products, despite some challenges in meeting its full capacity. The Dangote Refinery’s shift to local crude supply is expected to have a positive impact on the Nigerian economy, reducing the country’s reliance on imported petroleum products and saving foreign exchange.
The refinery’s success will also depend on the government’s ability to ensure a stable and conducive business environment, as well as its collaboration with local oil traders and producers to meet the refinery’s crude needs. #Dangote Refinery to Ditch Crude Imports by December, Shifts Focus to Local Supply#
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