Dangote Refinery Set to Get Crude Oil Supply From US, Hints at Delivery Date
- Dangote Refinery will get crude oil supply from the United States, according to sources
- A report states that the United States is one of the world's largest crude oil exporters
- This comes after the refinery announced authorized distributors for Dangote Petroleum Refinery
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Dangote refinery is preparing to import crude oil from the United States in the coming months.
Source: UGC
This indicates that American barrels are becoming more competitive in the international market, according to a Bloomberg report.
This is an important milestone for the refinery since it is anticipated to assist Nigeria in becoming a net exporter of refined products and less dependent on petroleum imports.
Dangote to get supply by February
According to dealers with knowledge of the situation, Trafigura Group sold two million barrels of crude oil of WTI Midland to the Dangote refinery for delivery by the end of February.
BusinesDay reported that Refining US crude oil is easier since it is often lighter and sweeter than Nigerian crude oil.
In addition, the United States is a major shale oil producer, a sort of crude oil recovered by hydraulic fracturing and horizontal drilling from rock formations.
The US is now one of the world's largest crude oil exporters because of the recent explosion in shale oil output.
This came after the long-awaited Port Harcourt refinery finally announced readiness to begin production operations.
In a recent development, the refinery was announced as an authorized distributor of Dangote Petroleum Refinery.
The company said the development reaffirms its commitment to boosting local product supplies.
NUPRC gives oil firms strict orders on Dangote
Legit.ng reported that the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) ordered oil companies in Nigeria to supply about 483,000 barrels of crude oil daily to local refineries for the next six months beginning January 2024.
The initiative is part of Nigeria's efforts to ensure regular supply to local refiners for domestic consumption.
About six local refineries are expected to begin production in the coming year, including the 650,000-capacity Dangote refinery and Nigeria's three refineries in Port Harcourt, Warri, and Kaduna.
PAY ATTENTION: Donate to Legit Charity on Patreon. Your support matters!
Source: Legit.ng
