Dangote Refinery Source Crude from Equatorial Guinea The 650,000 barrels per day capacity Dangote Petroleum Refinery has bought its leading cargo of Equatorial Guinea’s medium sweet, Ceiba crude.
This is coming amongst reveals that the Nigerian National Petroleum Company Limited has supplied fresh cargoes of crude to the Dangote refinery.
According to Argus Media, sources with knowledge of the matter disclosed Dangote bought the 950,000 barrel cargo loading over April 12-13 from BP in the past week. The price levels of the deal were kept under wraps.
Argus declares that most Ceiba exports typically go to China. Around 18,000 barrels per day were discharged there concluding year, while three shipments went to Spain and one to the Netherlands, according to Vortexa data.
It was learnt that two cargoes loading in February and March this year are signalling Zhanjiang in China, according to tracking data.
Traders had reportedly noted that buying a Ceiba cargo is portion of Dangote’s efforts to diversify its crude sources.
Last month the refinery bought its leading cargo of Algeria’s light sweet Saharan Blend crude from trading firm Glencore, which is due to be delivered between March 15 and 20.
Market sources informed Argus that Dangote seems to have sourced competitively priced crude from Equatorial Guinea at a time when domestic grades are encountering sluggish demand from Nigeria’s core European market in the crowd of ample supply of cheaper Kazakh-origin light sour CPC Blend, United States WTI, and Mediterranean sweet crudes.
Several European refineries are due to undergo maintenance in April, which is further weighing on demand.
The Nigerian National Petroleum Company Limited has reported it is currently in negotiations with the Dangote refinery about extending the naira-for-crude arrangement, which involves crude prices being set in dollars and Dangote paying the naira equivalent.
“Any swerves to the terms of the programme may pressure Dangote to enlarge the quantum of alien crude in its slate,” the report said.
Refinery sources informed Argus in January that Dangote will source at least 50 per cent of its crude wants on the import market and is building eight storage tanks to facilitate this.
The founder of the refinery, Aliko Dangote, disclosed most recent month that the refinery is planning to reach its full capacity in March.
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However, crude shortage abides a challenge and this could prevent the facility from attaining its ramp-up plans.
In a statement recently, the NNPC spokesman, Olufemi Soneye, reported that 48 million barrels of crude oil have been made available to the Dangote refinery since October 2024, when the naira-for-crude deal started. He superposed that 84 million barrels had been made available since the refinery began operations in 2023.
“Under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024. In amass, NNPC has made over 84 million barrels of crude oil available to the Refinery since its beginning of operations in 2023,” Soneye noted.
This indicates that the NNPC is supplying an average of 300,000 barrels of crude oil per day to the Dangote refinery.
To hit its 650,000 target, experts revealed the refinery must look elsewhere for feedstock.
Category: World-News
Tag: Dangote Refinery Source Crude from Equatorial Guinea
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Published 3/16/2025