Dangote petroleum refinery is set to import crude oil from the United States, US, in the coming months, Bloomberg has revealed.
According to the New York firm, Trafigura Group is expected to sell 2 million barrels of WTI Midland to the Dangote petroleum refinery for end-February delivery.
With this, sources have said this is the first time the $20 billion refinery has purchased non-Nigerian crude oil.
Oil traders remain uncertain as to why a refinery in a large oil-producing Nigeria is buying from the US. Price is likely a factor, they said.
West Texas Intermediate Midland barrels are cheaper than grades like Nigeria’s, which are priced relative to North Sea grade Brent.
Aliko Dangote, the owner of the 650,000 barrel-a-day oil refinery and Africa’s richest man, said it will commence gasoline production by March 2024.
Recall that in January, Dangote petroleum refinery announced that it kick-started operations after receiving the final batch of the six million crude oil supply under a supply deal with the Nigerian National Petroleum Company Limited, NNPCL.
Seven major oil marketers in Nigeria have registered with the Dangote Petroleum Refinery for the lifting and distribution of refined petroleum products produced by the plant.
Dealers under the aegis of the Major Oil Marketers Association of Nigeria, MOMAN, on Sunday, January 14, confirmed that with the registration, they would begin the distribution of fuel produced from the facility once the commercial terms are sorted.
This came as the Independent Petroleum Marketers Association of Nigeria, IPMAN, also revealed that they would meet with the management of the Dangote refinery to discuss terms of product loading.
