- The first fuel cargo awarded to Trafigura and due to load at the end of February is 65,000 metric tons of low-sulphur straight-run fuel oil.
- A tender document seen by Reuters showed that the second tender is for about 60,000 tons of naphtha loading on February 23-29.
Dangote oil refinery has issued tenders to sell two fuel cargoes for export, the first from the newly commissioned refinery. A tender document has shown, and trading sources with knowledge of the matter told Reuters. For years, Nigeria has relied on expensive imports for nearly all the fuel it consumes. However, the $20 billion refinery plans to turn Nigeria into a net fuel exporter to other West African countries, in a huge potential shift of power and profit dynamics in the industry. Three sources that spoke to the news firm said that the first cargo is 65,000 metric tons of low-sulphur straight-run fuel oil, which Dangote awarded to Trafigura due to load at the end of February.
At least one refiner said Trafigura had offered them the cargo without elaborating further. A tender document showed that the second tender is for about 60,000 tons of naphtha loading on February 23-29. The deadline for submissions of bids closed yesterday afternoon. Last week, the sources stated that the refinery was preparing to deliver its first fuel cargo to the domestic market within weeks. The two fuels on offer are typical products of running light sweet crude through a refinery’s crude distillation unit (CDU) without further upgrading capacity.
Experts said it could take months for upgrading units to be brought online. The refiner began buying crude in December last year, and NNPC Ltd has been the main supplier. According to LSEG and Kpler ship tracking, Dangote has also purchased some US oil and expects to receive 2 million barrels of US WTI Midland in early March. Dangote and Trafigura declined Reuters’ request for comment. The refinery, built on a peninsula on the outskirts of Lagos by Africa’s richest man, Aliko Dangote, is Africa’s largest, with a nameplate capacity of 650,000 barrels per day.