Dangote refinery ramps up production with US crude - Bloomberg report

The Dangote Petroleum Refinery is making the most of cheaper oil imports from the United States for as much as a third of its feedstock as it starts up production.

According to a report by Bloomberg on Thursday, April 18, the plant has been shipping products readying two units to enable petrol output that will deliver a long-promised transformation of the fuel market both in Nigeria and the region.

Alan Gelder, the Vice President of Refining, Chemicals, and Oil Markets at the consultancy firm, Wood Mackenzie said: “Dangote is going to influence Atlantic Basin gasoline markets this summer and for the rest of the year.

“When the RFCC comes online, that’ll really shake things up because it alters the West African gasoline supply balance.”

The refinery is running at about 300,000 barrels per day, nearly half its nameplate capacity, according to the average estimate of analysts at WoodMac, FGE, and Citac.

The complex has started shipping jet fuel, gasoil, and naphtha as it widens to a full slate of products.

Wood Mackenzie expects the gasoline-focused units to be online this summer, while other analysts expect the RFCC to take until the end of the year.