Uncategorized

Dangote Refinery Boosts US Crude Oil Purchases Ahead Of Full Operations

Dangote Refinery has purchased 5 million barrels of US crude oil, scheduled for delivery next month and in September, according to a report by Bloomberg on July 11.

The refining company has also initiated a tender process to buy an additional 6 million barrels of American crude for September.

This development came after the refinery purchased over 16 million barrels of West Texas Intermediate crude oil this year.

The report suggested that the proportion of US crude purchases may increase in August and September, according to tenders for new supply seen by Bloomberg.

“For Nigeria and Dangote, the use of US crude likely reflects where there are spare barrels available to buy in the world and the most competitive price,” the report reads.

“The refinery has been billed as a way of helping Nigeria wean itself off foreign fuel supplies. The refinery near Lagos mostly runs on local crude supplies that can reach the plant from offshore terminals in as little as a couple of days.”

Tracking data indicated that the refinery took in over 41 million barrels of feedstock in the first half of the year as it completed test runs and gradually raised processing rates. About a quarter of that has been American supply, according to Bloomberg.

With the latest purchase, the inflows of American feedstock may increase significantly. In May, the refinery planned a purchase of 24 million barrels of crude from the US for over a year.

This move is seen as a strategic step towards reducing Nigeria’s dependence on foreign fuel supplies and boosting local refining capacity. The Dangote Refinery, located near Lagos, is expected to play a significant role in achieving this goal.

Boluwatife Enome

Source:The cable   

Follow us on:

Mosunmola Ogi-olu

Recent Posts

CAC Removes Innoson, Daitama, 80,000 Dormant Companies From Register For Ignoring Annual Return Deadlines

The CAC has removed dormant companies that failed to file annual reports for 10 years…

2 hours ago

NEC Gives Kwara, Kebbi, Adamawa One Week To Submit State Police Reports

NEC has set a one-week deadline for Kwara, Kebbi, and Adamawa to submit state police…

4 hours ago

Amazon Faces Potential EU Investigation Over Preferential Treatment Of Own Products

Amazon may face an EU investigation over preferential treatment of its own products under the…

4 hours ago

Akpabio Hails Igbo Resilience + Ndume Begs Senate To Allow Ubah’s Widow Succeed Him – Trending With Ojy Okpe

https://cdn.veri.app/a21afe40-c7c7-4a5c-b145-4fc72382ab4b.mp4 Senate President, Godswill Akpabio, during the night of tribute, held in honour of the…

4 hours ago

Kano Governor Yusuf Reunites 76 Pardoned Minors To Families

The Kano State government has reunited 79 pardoned minors accused of looting in the #End…

4 hours ago

Matt Gaetz Steps Down as Trump’s Attorney General Pick

Matt Gaetz has announced that he is withdrawing his name from consideration as Donald Trump’s…

4 hours ago