In a recent development, the Dangote Refinery, Nigeria’s largest oil refinery, has made significant purchases of crude oil from the United States. According to reports, the refinery has acquired 5 million barrels of US crude scheduled for delivery next month and has also started a tender process to buy an additional 6 million barrels of American crude for September.
This is not the first time Dangote Refinery has purchased crude oil from the US. The refinery has already bought more than 16 million barrels of West Texas Intermediate crude oil so far this year. Industry insiders believe that the refinery’s decision to buy US crude reflects the availability of spare barrels in the global market and competitive pricing.
The refinery, located near Lagos, is designed to help Nigeria reduce its reliance on foreign fuel supplies. While it typically runs on local crude supplies, which can reach the plant from offshore terminals within days, the refinery has been increasing its imports of American crude oil.
Data tracking suggests 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 ramped up processing rates. Of this amount, about a quarter was sourced from the US. With these latest purchases, inflows of American feedstock are expected to increase significantly.
In May, Dangote Refinery planned to buy 24 million barrels of crude oil from the US for over a year. These recent purchases signal a significant shift in the refinery’s supply chain strategy, which is likely to have a major impact on Nigeria’s energy market.
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