Africa’s richest man Aliko Dangote’s refinery to receive first crude shipment from Brazil

Timilehin Adejumobi -

Key Point

  • Dangote Oil Refinery, owned by Africa’s richest man Aliko Dangote, to receive its first crude shipment from Brazil.
  • One-million-barrel cargo of Brazil’s Tupi crude signifies progress towards full capacity.
  • Import marks a first for Nigeria, aiming to reduce reliance on foreign fuel.

The Dangote Oil Refinery, owned by Nigerian billionaire and Africa’s richest man Aliko Dangote, inches closer to full capacity with its maiden crude import, a one-million-barrel cargo of Brazil’s Tupi crude scheduled for delivery in late August. This marks a historic moment for Nigeria, as it represents the first such import from the South American nation.

Dangote Refinery gears up for capacity with Brazilian crude import

Despite being Africa’s top oil producer, Nigeria relies heavily on imported fuels due to its underdeveloped domestic refining sector. The Dangote Oil Refinery is leading the charge to break this dependence. Local crude processing aims to bolster the country’s energy security, reduce reliance on imports, and ultimately deliver lower fuel prices for consumers.

Diversifying crude sources is paramount for the refinery’s success and Nigeria’s broader energy strategy. The Brazilian crude, supplied by state-owned Petrobras, is cost-competitive and well-suited for the refinery’s requirements.

Nigeria secures crude for refineries after dispute with oil majors

Earlier this week, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) resolved a supply dispute by securing an agreement with oil producers to deliver crude oil to domestic refineries at market prices.

This follows tensions with international oil companies regarding excessive premiums and limited crude availability. The resolution aims to ensure a stable domestic crude supply for Nigerian refineries, fostering resilience and reducing overreliance on any single source.

Located near Lagos, the Dangote Petrochemical Complex represents a significant milestone for Nigerian industrial development. The complex houses a one-million-metric-tonne-per-year polypropylene plant and boasts two of Africa’s largest fertilizer trains, with a combined annual capacity of three million tonnes of urea.

Dangote Oil Refinery upends market, tops European rivals in gasoil exports

The Dangote Oil Refinery prioritizes environmental responsibility through a closed-loop process water system, generating 50MW of power from waste heat, and producing cleaner Euro-V standard fuels. Additionally, advanced carbon capture technologies minimize CO2 emissions, mitigating the environmental impact of crude oil processing.

Within the West African market, the Dangote Oil Refinery has emerged as a leading gasoil exporter, surpassing European refiners by leveraging its proximity and logistical advantages to expand its influence in neighboring markets.

As Nigeria strengthens its refining capabilities, the Dangote refinery stands at the forefront of this transformative journey, promising a future of energy independence and economic growth for the nation.