Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,161,499 members, 7,847,056 topics. Date: Saturday, 01 June 2024 at 10:16 AM

Dangote Refinery Turns To US For Crude Supplies. - Nairaland / General - Nairaland

Nairaland Forum / Nairaland / General / Dangote Refinery Turns To US For Crude Supplies. (52 Views)

Driver Knocks Down Mysterious Bird, It Turns To A Beautiful Unclad Woman (video) / Dangote Truck Crushes A Man And 3 Students Dead In Ogun (Graphic Photos) / Dangote Trailer Crushes Lady Dead On Enugu-Port Harcourt Expressway (Graphic Pic (2) (3) (4)

(1) (Reply)

Dangote Refinery Turns To US For Crude Supplies. by emmi14: 6:20am On Feb 02
Nigeria’s giant new oil refinery Dangote, the largest in Africa, is set to import crude from the US in the coming months, a sign of just how competitive American barrels have become in the global market.

Trafigura Group sold 2 million barrels of WTI Midland to Dangote refinery for end-February delivery, said traders with knowledge of the matter. This is the first time that the giant refinery has purchased non-Nigerian crude, traders said.

Booming US oil supply over the past decade or so has transformed the global market, reaching as far afield as Asia. Nigeria’s economy is dependent on petroleum exports, meaning the deliveries from across the Atlantic are telling.

The refinery is sourcing domestic crude under a supply deal with the trading arm of the state company Nigerian National Petroleum Co The first cargo that arrived at the plant last month was Nigeria’s Agbami crude, sold by a trading unit of Shell. This was followed by more Nigerian barrels including the nation’s Amenam, Bonny Light and CJ Blend streams.

As well as processing domestic feedstock, the new giant plant is equipped to run other African crudes as well as supply from further afield including the US and Saudi Arabia, Dangote Group said earlier this month.

It’s not clear why a refinery in a large oil producing country is buying from the US, but price is likely a factor, according to traders. 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 refinery is expected to start gasoline production by March, local newspaper The Guardian reported at the weekend, quoting Dangote himself.

(1) (Reply)

Embrace New Construction Horizons / The Perfect Haven: 2 BHK Apartments By Silversky Builders In Madhavaram / Choosing The Best Color For Your Adirondack Chairs: Schemes And Tips

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 9
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.