Dangote Refinery, Lagos, Nigeria
Nigeria’s Dangote Refinery has commenced exporting jet fuel to Europe. The refinery’s first cargo, carrying 45,000 metric tons of jet fuel, is being transported by BP to Rotterdam. This marks a significant milestone in the global energy market and highlights the rapid operational expansion of the massive facility.
S&P Global Commodity Insights reported that the jet fuel was loaded onto the Doric Breeze ship from Lekki on May 27. This shipment, which complies with European jet A1 standards, underscores the refinery’s ability to produce fuel meeting international quality benchmarks.
“BP cargo refers to the shipment of jet fuel that British Petroleum (BP) has acquired and is currently transporting,” noted the report from PUNCH Online.
This export to Europe follows the refinery’s earlier deliveries within Africa. Since April, Dangote has exported six jet fuel/kerosene cargoes to Senegal, Togo, and Ghana. A representative from Dangote confirmed that the refinery has been compliant with European standards since these initial shipments.
The export marks a new chapter for the 650,000 barrels per day (b/d) refinery, which aims to disrupt established West African trade flows. “The inaugural European shipment demonstrates the growing reach of products from the Dangote refinery,” S&P Global Commodity Insights stated.
European traders, however, have expressed concerns about the new jet fuel flows exacerbating the existing market surplus. The introduction of Nigerian supply into an already saturated European market could lead to further price reductions.
Platts assessments indicated that the CIF Northwest European jet fuel cargoes fetched a premium of $52/mt to the front-month ICE LSGO contract on May 29, down $3.25/mt on the day and $11.25/mt on the week.
In addition to jet fuel, Dangote has been exporting naphtha, fuel oil, and gasoil to markets in Europe, Africa, and Asia. However, naphtha exports may soon decrease as the refinery prepares to start gasoline production. “Dangote is now projecting its first gasoline supplies to begin in June,” a spokesperson said, revising the initial May deadline.
The refinery aims to produce ultra-low sulfur diesel eligible for export to Europe by the third quarter. Analysts forecast that the refinery will begin steady gasoline production no earlier than Q3, with full operational capacity expected around 2027.
Looking ahead, the Dangote Refinery could make Nigeria a net jet fuel exporter by the fourth quarter of 2024, with expected production yielding around 45,000 b/d of jet fuel at 80% utilization.
Additionally, the $20 billion Dangote Oil Refinery is set to be listed on the Nigerian Stock Exchange by December 2024, according to Aliko Dangote, Chairman of the Dangote Group.
This landmark move by the Dangote Refinery not only strengthens Nigeria’s position in the global energy market but also signifies a transformative step for the country’s economic and industrial landscape