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Dangote Turning to Foreign Crudes As Local Supply Stalls: Platts

OIL
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The initial plan for NNPC to ship around 300k b/d of crude to Dangote has not materialised, Platts said, with current flows more like 160k b/d, Platts said in its Oil Market Podcast.

  • Consequently, Dangote has increasingly turned to crude imports, such as WTI from the US.
  • Traders have said that WTI is also now more competitively priced than Nigeria’s own domestic light sweet grades.
  • However, this is not without its own problems, with the refinery struggling due to foreign exchange payment issues.
  • Platts said that the refinery has struggled to find foreign exchange dollars, increasing the difficulty of acquiring WTI cargoes for cash. It had tried to swap crude for refined products.
  • On July 14th, Aliko Dangote said in a statement that the refinery was going to broaden its feedstock sources to include other African producers like Senegal, Libya, and Angola, while also including some Brazilian crudes.
  • Senegal just brought its first rude project online, the 100k b/d Sangomar project.
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The initial plan for NNPC to ship around 300k b/d of crude to Dangote has not materialised, Platts said, with current flows more like 160k b/d, Platts said in its Oil Market Podcast.

  • Consequently, Dangote has increasingly turned to crude imports, such as WTI from the US.
  • Traders have said that WTI is also now more competitively priced than Nigeria’s own domestic light sweet grades.
  • However, this is not without its own problems, with the refinery struggling due to foreign exchange payment issues.
  • Platts said that the refinery has struggled to find foreign exchange dollars, increasing the difficulty of acquiring WTI cargoes for cash. It had tried to swap crude for refined products.
  • On July 14th, Aliko Dangote said in a statement that the refinery was going to broaden its feedstock sources to include other African producers like Senegal, Libya, and Angola, while also including some Brazilian crudes.
  • Senegal just brought its first rude project online, the 100k b/d Sangomar project.