{"id":142407,"date":"2024-08-09T16:13:01","date_gmt":"2024-08-09T15:13:01","guid":{"rendered":"https:\/\/newsdigest.ng\/?p=142407"},"modified":"2024-08-09T16:13:01","modified_gmt":"2024-08-09T15:13:01","slug":"dangote-refinery-built-to-refine-nigerian-crude-says-ceo","status":"publish","type":"post","link":"https:\/\/thepublicpulse.ng\/?p=142407","title":{"rendered":"Dangote Refinery Built to Refine Nigerian Crude, Says CEO"},"content":{"rendered":"

Alhaji Aliko Dangote, President and CEO of Dangote Group, emphasized that the $20 billion Dangote Petroleum Refinery was specifically designed to process Nigerian crude oil and enhance its value within the country. <\/span><\/p>\n

In a statement released by the refinery on Thursday, Dangote questioned the need for the refinery to shift its focus, despite also refining crude from Europe, the U.S., and other regions.<\/span><\/p>\n

Africa\u2019s richest man acknowledged that Nigeria\u2019s domestic crude oil supply challenges are being addressed by the relevant parties. <\/span><\/p>\n

The statement revealed that the refinery has already impacted crude oil flows, with numerous Nigerian oil cargoes remaining within the country and U.S. WTI Midland, a similar light, sweet crude, being imported. This development could potentially tighten the light, sweet crude market.<\/span><\/p>\n

According to the statement, a West African crude trader told Commodity Insights that “its diet is WTI and the lighter Nigerian crudes, so if you were chasing those barrels, you\u2019d probably feel it quite keenly.” The refinery initially favored WTI Midland crude to supplement Nigerian supply, signing long-term contracts for the U.S. grade due to its competitive pricing.<\/span><\/p>\n

The statement also highlighted that the refinery\u2019s crude flows are being felt in other markets, especially in Europe, which is the largest consumer of light, sweet Nigerian crude. The U.S. grade has accounted for 30 percent of crude delivered to Dangote, involving 18 cargoes.<\/span><\/p>\n

Dangote also mentioned that the refinery plans to diversify its crude sources by incorporating Libyan, Angolan, and Brazilian grades. \u201cThe refinery was built to use Nigerian crude and add value to it within Nigeria. Why should we deviate from that focus?\u201d Dangote questioned, while confirming that the crude supply issues are being resolved but that the refinery remains open to opportunities to supplement it.<\/span><\/p>\n

Rasool Barouni, Associate Director and head of Refining at S&P Global Commodity Insights, noted that \u201cDangote refinery is designed to process a range of light and medium grades of crude oil, including Nigerian grades.<\/span><\/p>\n

Other similar grades including other WAF grades could be an option.\u201d<\/span><\/p>\n

Nigeria, Sub-Saharan Africa\u2019s largest oil producer, pumped 1.5 million barrels per day in June, according to S&P Global Commodity Insights\u2019 Platts OPEC Survey.<\/span><\/p>\n

Until now, the country has been exporting all its crude due to a lack of refining capacity, with gasoline, diesel, and jet fuel being imported for domestic use.<\/span><\/p>\n

The statement also pointed out that supplies from Dangote Refinery and Petrochemicals could pressure Europe\u2019s oil industry, particularly the Northwest Europe gasoil sector. <\/span><\/p>\n

OPEC\u2019s June 2024 Oil Market Report listed Dangote refinery as a key diesel and jet fuel supplier expected to disrupt Europe\u2019s oil and gas industry, a development projected to positively impact Nigeria\u2019s economy.<\/span><\/p>\n

Earlier predictions from Standard & Poor Global, based on trading sources and ship tracking data, suggested that the Dangote refinery would significantly shake up international crude flows upon reaching full capacity, with its impact already being felt since it began operations in January.<\/span><\/p>\n

In response to media reports, the Dangote refinery clarified its position on crude supply. \u201cOur attention has been drawn to media reports alleging that the Dangote refinery has backtracked by acknowledging that NNPC supplied about 60 percent of the 50 million barrels we lifted. To clarify, we have never accused NNPC of not supplying us with crude,\u201d the refinery stated.<\/span><\/p>\n

The statement expressed concern over the Nigerian Upstream Petroleum Regulatory Commission\u2019s (NUPRC) reluctance to enforce the domestic crude supply obligation. \u201cFor September, our requirement is 15 cargoes, of which NNPC allocated six. Despite appealing to NUPRC, we\u2019ve been unable to secure the remaining cargoes.<\/span><\/p>\n

When we approached IOCs producing in Nigeria, they redirected us to their international trading arms or responded that their cargoes were committed.\u201d<\/span><\/p>\n

Consequently, the refinery often has to purchase Nigerian crude from international traders at an additional $3-$4 premium per barrel, translating to $3-$4 million per cargo. The refinery urged NUPRC to fully enforce the domestic crude supply obligation as mandated by the Petroleum Industry Act (PIA).<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Alhaji Aliko Dangote, President and CEO of Dangote Group, emphasized that the $20 billion Dangote Petroleum Refinery was specifically designed to process Nigerian crude oil and enhance its value within the country. In a statement released by the refinery on Thursday, Dangote questioned the need for the refinery to shift its focus, despite also refining […]<\/p>\n","protected":false},"author":1,"featured_media":141285,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3],"tags":[201,192],"class_list":{"0":"post-142407","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-aliko-dangote","9":"tag-dangote-refinery"},"yoast_head":"\nDangote Refinery Built to Refine Nigerian Crude, Says CEO - The Public Pulse<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/thepublicpulse.ng\/?p=142407\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dangote Refinery Built to Refine Nigerian Crude, Says CEO - The Public Pulse\" \/>\n<meta property=\"og:description\" content=\"Alhaji Aliko Dangote, President and CEO of Dangote Group, emphasized that the $20 billion Dangote Petroleum Refinery was specifically designed to process Nigerian crude oil and enhance its value within the country. 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