Dangote Refinery has purchased 5 million barrels of US crude, set for delivery next month and in September, Bloomberg reports. The refinery has also initiated a tender process to acquire an additional 6 million barrels of American crude for September, reflecting a growing trend in its sourcing strategy.
So far this year, Dangote Refinery has acquired over 16 million barrels of West Texas Intermediate crude oil. In the coming months, the proportion of crude sourced from the US is likely to increase, as indicated by tenders for new supply seen by Bloomberg.
“For Nigeria and Dangote, the use of US crude likely reflects where there are spare barrels available to buy in the world and the most competitive price,” the report states.
The refinery, near Lagos, primarily runs on local crude supplies that can be delivered from offshore terminals within a few days. However, due to competitive pricing and availability, the refinery is increasingly turning to American supplies. Tracking data shows the refinery took in over 41 million barrels of feedstock in the first half of the year, with about a quarter of that being American supply.
In May, it was reported that the refinery planned to purchase 24 million barrels of crude from the US over the course of a year. The latest purchases indicate a significant increase in the inflow of American feedstock.
This strategy supports the refinery’s efforts to ensure a stable and cost-effective supply of crude, contributing to its goal of helping Nigeria reduce its dependence on foreign fuel supplies. The purchase of US crude reflects a strategic move to leverage available global resources and competitive pricing, enhancing the refinery’s operational efficiency.
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