$20BN DANGOTE REFINERY TO IMPORT CRUDE FROM UNITED STATES
Written by Oyebamiji Idowu on January 30, 2024
The $20 billion Dangote Refinery is set to shake up the oil market, announcing its first-ever import of crude oil from the United States. This groundbreaking move signifies a shift in the global energy landscape, with Nigerian refineries tapping into the abundant US oil supply.
Trafigura Group, a major commodities trader, has reportedly sold two million barrels of WTI Midland crude to the Dangote refinery, scheduled for delivery by the end of February 2024. This marks a historic moment for the refinery, as it has previously relied solely on Nigerian crude.
The decision reflects the significant growth in US oil production over the past decade, transforming the global market and extending its reach to new regions like Asia. For Nigeria, heavily reliant on petroleum exports, these transatlantic deliveries present both opportunities and challenges.
While some see this as a potential threat to Nigerian crude sales, others view it as a chance for the Dangote Refinery to secure reliable, high-quality crude and diversify its supply chain. Regardless of the interpretation, the deal undoubtedly marks a significant shift in the African oil market.
With its first US crude import, the Dangote Refinery takes a bold step into the global energy landscape. As Nigeria grapples with the implications of this move, the wider industry awaits to see how it shapes the future of oil trade in the region and beyond.
Source: Jordan105.5fm News Bulletin.