The Dangote Refinery is gearing up to import crude oil from the United States, marking the first time the refinery, located in Nigeria, will purchase non-Nigerian crude.
According to a recent Bloomberg report, Trafigura Group has facilitated the sale of 2 million barrels of West Texas Intermediate (WTI) Midland to the Dangote refinery for delivery by the end of February.
While the specific reasons behind the decision remain unclear, traders suggested that the move could be attributed to the competitive pricing of American barrels in the international market.
“West Texas Intermediate Midland barrels tend to be cheaper than grades like Nigeria’s, which are priced relative to the North Sea grade Brent,” the Bloomberg report said.
Dangote Refinery, inaugurated by former President Muhammadu Buhari in May 2023, has a refining capacity of 650,000 barrels per day (bpd).
The facility, designed to process 100 percent Nigerian crude, also has the flexibility to handle various crude grades from Africa, the Middle East, and even the United States.
The refinery officially commenced operations on January 12, 2024, with the production of diesel and aviation fuel.
