Dangote Considers Ending Petroleum Product Export to Europe After First Jet Fuel Delivery

• BP has secured a portion of a 120,000 metric ton tender to deliver jet fuel from Dangote to Rotterdam
• Cepsa, a Spanish refiner, is anticipated to provide supplies to the continent shortly
• The company has transported fuel oil, gasoline, and naphtha to markets in Asia, Africa, and Europe thus far

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

BP has obtained a portion of a 120,000 metric ton tender offered for the end of May and is now delivering its first jet fuel shipment from Dangote to Rotterdam.

According to S&P Global Commodities, two sources have verified that the Doric Breeze ship loaded 45,000 metric tons of supplies from Lekki on May 27 to become the first BP vessel.

Traders have also stated that Cepsa won a share of the tender, and the Spanish refiner is anticipated to provide supplies to the continent shortly.

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Dangote Refinery meets standards

A Dangote spokesperson earlier attested to S&P Global Commodity Insights that the refinery complied with European jet A1 criteria earlier when the product began to be exported within Africa in April.

The first shipment of goods to Europe suggests how the 650,000 b/d Dangote refinery, which has rapidly grown and aims to upend traditional trade patterns in West Africa, is becoming increasingly prevalent.

Based on CAS data, Dangote has shipped six jet fuel and kerosene cargoes since April 8. All of these shipments have gone to Senegal, Togo, or Ghana. Furthermore, reports suggest that BP will probably keep using refinery products to supply jet fuel to the West African market.

As Nigerian exports enter an already crowded market, European merchants cautioned that the arrival of fresh jet fuel supplies could exacerbate the current slump.

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Dangote to stop exporting naphtha

According to a Dangote spokesman who spoke with Commodity Insights, the company has so far shipped gasoline, fuel oil, and naphtha to markets in Europe, Africa, and Asia. However, naphtha exports may soon be discontinued to make way for gasoline manufacturing.

Since April, Dangote has been shipping four naphtha shipments to Europe monthly. However, these may soon be reduced to increase domestic supplies for gasoline blending after the plant's fluid catalytic cracker is serviced.

Samuel Oyekanmi, a a research and insight associate with Norrenberger Financial Group said,

"The full implementation of Dangote Refinery is a potential growth propeller, however it will take time before we start seeing the full impact on the economy."

Dangote Refinery speaks on Lagos, London listing

Legit.ng reported that a top official has confirmed that Dangote Refinery intends to dual list on the London and Lagos stock exchanges.

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This came after Aliko Dangote, the richest man in Africa, stated that he may attempt to list the company in Nigeria before the end of the year.

When it reaches total capacity this year or next, the $20 billion refinery will be the largest refinery in Africa and Europe, with a capacity of up to 650,000 barrels per day (bpd).

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng