Aviation Fuel Imports Crash by 8,000bpd as Dangote Supplies Jet fuel to Airlines
Nigeria's aircraft imports decreased from 13,000 barrels per day in 2023 to 5,000 barrels per day in 2024 as a result of the Dangote Petroleum Refinery
Less than six months after it began operations, the Dangote refinery is apparently supplying the majority of domestic jet supplies
Currently, at least two-thirds of Nigeria's jet fuel supply and more than half of West Africa's gasoline consumption come from Dangote jet fuel
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
An Energy Intelligence analysis has shown that the Dangote Petroleum Refinery has led to decline in Nigeria's aviation imports from 13,000 barrels per day in 2023 to 5,000 barrels per day in 2024.
Source: UGC
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The Dangote refinery is reportedly providing the majority of domestic jet deliveries less than six months after it started operations.
According to Energy Intelligence estimations, Dangote jet fuel currently accounts for over half of the gasoline consumed in West Africa and at least two-thirds of Nigeria's jet fuel supply.
“Nigeria’s jet fuel imports have collapsed from 13,000 b/d last year — when they made up all of the country’s supply — to just 5,000 b/d so far in 2024. Jet imports into West Africa from outside of the region have similarly dropped from 34,500 b/d in 2023 to just 17,900 b/d so far this year. Loading schedules show Dangote jet heading to Benin, Senegal, Togo, the Gambia, and Gabon in the region,” the report stated.
Kpler tanker tracking reported that since starting exports in March, Dangote had carried 1.1 million tonnes (35,000 b/d) of jet fuel abroad, the Punch reported.
This comprises 315,000 tonnes of JetA1 going to South America and over 290,000 tonnes going to Europe, with the majority remaining in West Africa.
“Exports have tailed off slightly since September in line with higher domestic sales. Energy Intelligence calculates that since April an additional 94,000 tonnes of Dangote jet (fuel) has been shipped to other ports in Nigeria, mainly Lagos.
“The refinery’s management had previously suggested around three-quarters of Dangote jet production would be sold by sea with the rest loaded onto road tankers heading inland,” the report revealed.
According to Foluso Sobanjo, Managing Director of Asharami Synergy, Dangote's price is either marginally cheaper than imports or at least the same.
Dangote jet fuel is currently discounted to importers by $2 to $3 per metric tonne, according to Sobanjo.
He noted that it is also far more convenient to use the 10,000–20,000 tonne "coaster" volumes that are regularly available from the plant.
“Prices have fallen as the plant has ramped up production — despite large volumes of Mideast and Asian jet fuel passing right by the Nigerian coast on the way to Europe. Sources say Dangote is now operating at more than 300,000 b/d and finally began selling gasoline last month,” the report added.
Additionally, Sobanjo refuted claims in the local press that Dangote had begun selling jet fuel locally in naira.
FG Speaks on Opening New Aviation Fuel Depot
Legit.ng reported that a 15 million-liter aviation fuel store will be unveiled near the Murtala Muhammed International Airport road in Lagos by the Minister of Aviation and Aerospace Development, Festus Keyamo, and the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri.
When it opens for business on October 17, 2024, the Joint User Hydrant Installation 2 will be Nigeria's largest airside jet fuel store.
This was revealed in a statement provided to the PUNCH on Thursday and signed by Patience Dappa, the chairperson of the JUHI-2 Board and group managing director of Masters Energy.
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Source: Legit.ng
