admin
Dangote oil refinery is due to take in up to 400 000 barrels a day of Nigerian crude over the coming two months as Africa’s largest plant transforms the region’s import and export markets.
The giant refinery outside Lagos is scheduled to take delivery of about 24 million barrels of Nigerian supply in October and November, as it increasingly turns to local feedstock, according to a list of cargo allocations seen by Bloomberg News.
Years behind schedule, Dangote will upend the Atlantic oil market by significantly reducing Nigeria’s crude exports.
The 650 000-barrel-a-day plant — larger than any other in Africa or Europe — will claim 13 to 14 shipments from Nigeria’s typical monthly program of about 50 cargoes.
The West African crude market is set to be “substantially tighter” in the fourth quarter because of the supply to Dangote, said Ronan Hodgson, a London-based analyst at FGE. The volumes could even send Nigerian exports below 1 million barrels a day, he said.
Some shipments over the next two months may not be delivered as planned, and October’s list includes two cargoes already delayed from September.
Still, the scheduled volume is significantly larger than the average 255 000 barrels a day of Nigerian oil taken in by Dangote over the first half of the year as it gradually ramped up processing, data compiled by Bloomberg show.
A spokesperson for Dangote didn’t respond to requests for comment. — Bloomberg.
Online Reporter