Dangote Refinery Begins Fuel Export To West African Countries

Dangote Refinery Begins Fuel Export To West African Countries

Dangote Refinery Begins Fuel Export To West African Countries

Dangote Refinery Begins Fuel Export To West African Countries

Date: 30-11-2024 6:23 pm (53 mins ago) | Author: Mister Jay Wonder

bohlah at 30-11-2024 06:23 PM (53 mins ago)

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The Dangote Petroleum Refinery has officially commenced the export of refined petroleum products, marking a significant step in its plan to shake up fuel markets across West Africa. According to a Bloomberg report on Tuesday, the refinery’s first shipment of gasoline was sent to waters off Togo, a neighbouring country, signaling the refinery’s growing influence in the region.

The report, which referenced data from ship-tracking platforms such as Vortexa and Kpler, detailed that the tanker *CL Jane Austen* loaded more than 300,000 barrels of gasoline from Dangote’s refinery and set sail westward. This marks the beginning of what could be a major shift in regional fuel dynamics, as the refinery ramps up production.

This development follows a statement last month by Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority (NPA), who revealed that Ghana was exploring the possibility of importing petroleum products from Dangote’s refinery to cut the high costs of purchasing fuel from Europe. Abdul-Hamid estimated that Ghana spends around $400 million monthly on European fuel imports, and purchasing from Dangote would help reduce freight costs, thus lowering prices of goods and services.

“The refinery’s 650,000 barrels per day capacity will exceed Nigeria’s domestic needs, making it easier for us to import from Nigeria rather than Europe, which will significantly reduce our costs,” Abdul-Hamid said at the OTL Africa Downstream Oil Conference in Lagos.

Further reports suggest that Dangote Petroleum Refinery is also negotiating fuel exports to South Africa, Angola, and Namibia. Talks are reportedly at an advanced stage with these countries, with additional discussions underway with Niger, Chad, Burkina Faso, and the Central African Republic.

A source close to the negotiations confirmed that the refinery’s management is in talks with several African nations to start lifting fuel as soon as possible. This expansion could position Dangote as a dominant player in the regional fuel market.

Although the current shipment is relatively small by global standards, it highlights Dangote’s growing refinery output and potential to significantly impact regional gasoline supply. The cargo, currently floating off the coast of Lomé, Togo, is in a location commonly used for ship-to-ship transfers, which means the gasoline could be rerouted to other destinations.

This is not the first indication of Dangote Refinery’s regional ambitions; last month, the refinery made its first seaborne gasoline shipment to Lagos, Nigeria’s commercial hub. Whether larger volumes of gasoline will be exported in the future remains uncertain, but the potential for regional market disruption is evident.

The Nigerian government recently ended the state-owned oil company’s exclusive rights to purchase gasoline from the Dangote refinery for domestic use, while continuing to allow fuel imports from Europe and the US.

A spokesperson for Dangote Refinery declined to comment on the new developments when contacted. However, the refinery’s growing influence in the region is set to reshape the West African fuel supply landscape in the coming months.

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