Suexmax tanker supplying 1 mil barrel Agbami crude cargo to Dangote refinery

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Nigeria’s Dangote refinery, valued at $19 billion, is on the brink of commencing fuel production as the OTIS tanker transports a 950,000-barrel cargo of Agbami crude, marking a pivotal moment after protracted delays. The Suezmax tanker, chartered by NNPC, signifies the initiation of Dangote’s crude supplies, and the refinery, completed in May, is poised for operational activity. NNPC’s commitment to supplying 6 million barrels as feedstock in December underscores a strategic move to catalyze the refinery’s production capabilities, aligning with market dynamics.

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The financial significance is evident as Dangote’s refinery, situated near Lagos, holds the promise of reshaping Nigeria’s energy landscape. Despite the project’s unveiling in 2013 and subsequent delays, the facility, boasting key installations in 2019, is positioned to process three Nigerian crude grades, including Escravos, Bonny Light, and Forcados. The refinery’s designed capacity of 650,000 b/d anticipates the production of 327,000 b/d of gasoline, 244,000 b/d of gasoil/diesel, 56,000 b/d of jet fuel/kerosene, and 290,000 mt/year of propane/LPG.

Nigeria’s aspiration to reduce gasoline imports aligns with the Dangote refinery’s potential impact, aiming to address the country’s dependence on fuel imports due to the current state of its refineries, all of which are undergoing repairs. This development comes at a time when Nigeria predominantly exports its crude and condensate production.

Dangote officials, as communicated to S&P Global Commodity Insights, anticipate an initial operational capacity of 370,000 b/d, emphasizing production focus on jet fuel and diesel. However, S&P Global analysts project the refinery to reach full operational capacity by mid-2025, with potential delays still in the picture. Forecasts indicate that Nigerian gasoline production could surpass imports well into the 2040s, reflecting the transformative impact of the new refinery on the country’s energy landscape.

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