Dangote Refinery Ships 1.7 Million Barrels of Jet Fuel to the U.S.
Nigeria’s oil and gas sector, the Dangote Petroleum Refinery has shipped six vessels carrying approximately 1.7 million barrels of jet fuel, also known as aviation fuel, to the United States in March.
According to a statement released by the refinery on Tuesday, data from Kpler, a global ship tracking service, indicates that another vessel, Hafnia Andromeda, is scheduled to arrive at the Everglades terminal in the U.S. on March 29, with a cargo of about 348,000 barrels of jet fuel.
“This shipment to the United States follows three cargoes of jet fuel, totalling around 130 million litres, exported from Nigeria to Saudi Arabia by the Dangote Petroleum Refinery,” the statement noted.
The refinery, which has already demonstrated its competitive edge in exporting gasoline (PMS) to Europe, is now poised to disrupt the U.S. aviation fuel market. The influx of Nigerian jet fuel could potentially challenge the economics of domestic fuel producers in the world’s largest energy-consuming nation.
Steven Barsamian, Chief Operating Officer of TankTiger, explained that the surge in supply from Nigeria is expected to push down jet fuel prices in the U.S. ahead of the peak summer travel season.
“Trade analysts and storage brokers have projected that these imports from Dangote Refinery will help stabilize and even reduce aviation fuel prices during this period,” Barsamian said.
He further highlighted that U.S. jet fuel imports in March have averaged around 226,000 barrels per day (bpd), the highest level recorded since February 2023, showcasing the growing global demand for Dangote Refinery’s products.
Economic experts have hailed Dangote’s jet fuel exports as a major achievement for Nigeria’s refining sector. Muda Yusuf, economist and CEO of the Centre for the Promotion of Private Enterprises (CPPE), described the development as a milestone that underscores Nigeria’s potential on the global stage.
“Nothing could be more prideful for us as a country than the fact that we now have a refinery producing products that meet the high standards of the U.S. market,” Yusuf said. “These markets do not compromise on quality, and the fact that they are willing to import from Nigeria is a testament to the refinery’s credibility.”
The former Director-General of the Lagos Chamber of Commerce and Industry (LCCI) emphasized that supporting the Dangote Refinery and other similar projects would further strengthen Nigeria’s economy.
“That is why both the government and citizens must rally behind the refinery. It is breaking barriers and elevating our country’s reputation,” he added.
Public policy expert Abimbola Oyarinu noted that Nigeria’s economy could have been in a far better state had the country invested in refining capacity earlier, rather than exporting crude oil and importing refined petroleum products.
“This is an issue that should have been addressed since 2014. If we had functioning refineries, we wouldn’t be grappling with high inflation and unemployment today,” Oyarinu said.
He further stressed that the Dangote Refinery is playing a crucial role in reducing Nigeria’s foreign exchange outflows while also attracting foreign capital. However, he warned that certain elite interests and policymakers appear to be working against the refinery’s success.
“The unfortunate reality is that some influential figures still seek to undermine the refinery and its achievements,” he added.
Despite these successes, the Dangote Refinery faces significant operational challenges. On March 19, the refinery announced a temporary halt in the sale of petroleum products in naira due to stalled negotiations on the naira-for-crude deal.
Earlier this month, the refinery reportedly received one million barrels of crude oil from Algeria between March 15 and March 20, further diversifying its supply chain.
