As Nigeria’s Dangote refinery in Lagos gears up its operations, it’s set to procure millions of barrels of US crude oil in the coming year to fuel its increasing processing rates, according to a recent Bloomberg report.
The refinery, spearheaded by Africa’s wealthiest individual, Aliko Dangote, has announced a term tender for the purchase of two million barrels monthly of West Texas Intermediate Midland crude for a year-long period starting from July. The tender deadline is slated for May 21st, as per Bloomberg sources.
Earlier this year, reports indicated that the refinery, boasting a capacity of 650,000 barrels per day, is strategically leveraging cheaper US oil imports for a significant portion of its feedstock, marking a pivotal step as it commences operations.
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Analysts foresee a substantial impact on the gasoline market, not only in Nigeria but across the Atlantic Basin, as the refinery readies its units for gasoline production, further solidifying its role as a game-changer in the regional fuel landscape.
“Dangote’s influence on Atlantic Basin gasoline markets is poised to shape trends throughout the summer and beyond,” remarked Alan Gelder, Vice President of Refining, Chemicals, and Oil Markets at Wood Mackenzie, a leading consultancy firm.
