Dangote to get 12m barrels of crude from the US as local supply challenges persist
Nigeria’s energy sector, the Dangote Petroleum Refinery is poised to receive a massive shipment of 12 million barrels of crude oil from the United States, expected to arrive by February 2024. This move comes as the refinery, Africa’s largest, grapples with persistent gaps in local crude supply despite efforts to ramp up production.
According to The Africa Report, the shipment has already left US shores and is en route to Nigeria. An insider revealed, “About 12 million barrels of crude have departed the US and should arrive in Nigeria by February.” This marks a notable shift for the refinery, which had previously turned to Nigerian crude to fuel its operations.
In October and November 2023, the refinery received approximately 24 million barrels of Nigerian crude, signalling a push to rely on local feedstock. However, the latest US shipment suggests a return to international suppliers as domestic supply challenges persist.
The Dangote Refinery, with a capacity of 650,000 barrels per day (bpd), was initially expected to source 13 to 14 shipments from Nigeria’s monthly crude program of about 50 cargoes between October 2023 and November 2024. However, the refinery has struggled to secure adequate supplies from local sources.
In November 2023, Edwin Devakumar, Vice President of Dangote Industries Limited, highlighted the hurdles faced by the refinery. He revealed that the Nigerian National Petroleum Company (NNPC) Limited had failed to meet its commitment to supply 385,000 bpd of crude to the facility. This shortfall has forced the refinery to look beyond Nigeria’s borders to sustain its operations.
The development comes amid Nigeria’s broader efforts to boost local refining and reduce dependence on imported petroleum products. In October 2023, the country officially began selling crude oil and refined products in naira, a move aimed at easing supply challenges and supporting domestic refining capacity. However, the Dangote Refinery’s reliance on US crude underscores the ongoing struggles in achieving self-sufficiency in the sector.
As the refinery awaits the arrival of the US shipment, industry experts are closely watching how this will impact Nigeria’s energy landscape. Will this move bridge the supply gap and stabilize production, or will it highlight deeper systemic issues in the country’s oil and gas sector? For now, all eyes are on the Dangote Refinery as it navigates these challenges on its path to transforming Africa’s energy future.
