Nigerians are in muted voice following Dangote Oil Refinery’s issuance of tenders to sell two fuel cargoes for export, according to Reuters investigation.
This according to the online newspaper is the first from the newly commissioned refinery, a tender document showed and trading sources with knowledge of the matter told Reuters.
The refinery, Africa’s largest with a nameplate capacity of 650,000 barrels per day, was built on a peninsula on the outskirts of the commercial capital Lagos by the continent’s richest man Aliko Dangote.
Nigeria has for years relied on expensive imports for nearly all the fuel it consumes but the $20 billion refinery is set to turn it into a net exporter of fuel to other West African countries, in a huge potential shift of power and profit dynamics in the industry.
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Straightnews gathered that the refinery hurriedly inaugurated by ex-President Muhammadu Buhari before his exit from office could have enlivened hope of many in getting supply of Premium Motor Spirit (PMS) following the high cost of the product caused by the ill-prepared removal of subsidy by President Bola Tinubu on May 29, 2023.
The effort of the refinery to supply adequate fuel for domestic consumption would have restored hope dashed by the aimless Turn-Around Maintenance restructuring of the moribund four refineries that gulped trillions of Naira.
Dangote declined a Reuters request for comment.
The first cargo is 65,000 metric tons of low-sulphur straight run fuel oil, which Dangote has awarded to Trafigura and is due to load at the end of February, three of the sources said. Trafigura declined to comment.
At least, one refiner said they had been offered the cargo by Trafigura without elaborating further.
The second tender is for about 60,000 tons of naphtha loading on Feb. 23-29, a tender document seen by Reuters showed. The deadline for submissions of bids closed on Thursday afternoon, a trader who participated in the tender told Reuters.
Sources told Reuters last week that the refinery was preparing to deliver its first fuel cargoes to the domestic market within weeks.
The two fuels on offer are typical products of running light sweet crude through a crude distillation unit (CDU) in a refinery without further upgrading capacity. It is expected to take months for upgrading units to be brought online, experts have said.
The refiner began buying crude in December last year and Nigeria’s state-owned oil firm NNPC Ltd has been the main supplier. Dangote has also purchased some U.S. oil and is expected to receive 2 million barrels of U.S. WTI Midland in early March, according to LSEG and Kpler ship tracking.
(Reuters)
