The Dangote Refinery has efficiently exported its jet gas to numerous worldwide locations, together with airports in Iceland, Tenerife, and London.
In line with a report by SP International Commodity Insights, the refinery’s Nigerian-made aviation gas has reached outstanding areas resembling Heathrow Airport within the UK, because the petrochemical facility continues to scale up manufacturing.
The report additional highlights that between January and October this yr, the vast majority of the refinery’s provide has been delivered to the Lome transshipment hub off Togo.
South Korea has additionally emerged as the biggest single export vacation spot, receiving 23,000 barrels per day (b/d) of naphtha.
Moreover, important volumes of gasoil have been exported to Ghana and different West African nations from the $20 billion mega refinery.
Estimates recommend that no less than eight African international locations are gearing as much as import Dangote Refinery merchandise when it achieves full operational capability subsequent yr.
SP International notes that the refinery’s operations have already positioned Nigeria as a web exporter of jet gas, naphtha, and gas oil.
Forecasts by Commodity Insights point out that Nigeria might export almost 50,000 b/d extra gasoil from Lagos than it imports by subsequent yr, with volumes anticipated to virtually triple by 2026.
Forecast on Petrol Export
With a mission to cut back Nigeria’s reliance on gas imports, Dangote Refinery was not initially anticipated to export substantial volumes of petrol. Nonetheless, as Nigerians proceed to grapple with excessive gas costs, the corporate is reportedly exploring export markets.
- Knowledge from the report signifies that Nigeria’s state oil agency, NNPC, beforehand relied on imports to fulfill roughly 350,000 barrels per day (b/d) of the nation’s petrol demand.
- Nonetheless, in November, NNPC introduced plans to solely supply provides from home refineries.
- Regardless of this shift, Dangote is projected to supply solely about 50,000 b/d of petrol as its residue fluid catalytic cracking unit ramps up.
- In the meantime, the refinery has already agreed to export 200,000 metric tons (mt) of petrol, a improvement consultants warn might spark a home political disaster and additional strain international refining margins.
- As well as, bettering gas high quality from Dangote has prompted Nigeria’s gas regulator to limit entry to low-cost however substandard imports. As requirements have improved, the federal government has additionally ceased shielding customers from rising costs, SP International famous.
Import Value after Subsidy Removing
Furthermore, the Nigerian Nationwide Petroleum Company (NNPC) Restricted had restricted capability to handle import prices, with the agency disclosing $6 billion in collected debt.
- Knowledge from S&P International Commodities at Sea reveals that the elimination of subsidies in Might 2023 induced petrol -imports to drop over 40% year-on-year, a decline partly attributed to diminished gas smuggling.
- Wanting past home markets, Dangote’s seek for petrol consumers is projected to exacerbate the decline in international refining margins.
Forecasts from Commodity Insights point out that petrol margins in Northwest Europe might fall from over $20 per barrel in early 2024 to roughly $7 per barrel by the primary quarter of 2025.
What it is best to know
Nairametrics beforehand reported that jet gas from Lagos-based Dangote Refinery now instructions almost two-thirds of Nigeria’s market share, in line with a current report.
- Knowledge from Power Intelligence, a US-based oil and gasoline developments tracker, signifies that the 650,000 barrels per day (bpd) refinery has considerably diminished Nigeria’s reliance on imported aviation gas and pushed down costs by roughly $2 to $3 per metric ton.
“We’re already shopping for from Dangote 1732570391; it’s barely cheaper or no less than the identical worth as imports,” mentioned Foluso Sobanjo, Managing Director of Asharami Synergy, in an interview with Power Intelligence.
- Power Intelligence estimates that Dangote’s jet gas now provides no less than two-thirds of Nigeria’s market and almost half of West Africa’s total consumption.
Nigeria’s jet gas imports have declined sharply from 13,000 barrels per day (b/d) in 2023—when imports met all home demand—to only 5,000 b/d up to now in 2024, the report reveals.
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