Nigeria’s newly constructed Dangote Refinery in Lagos is aiming to purchase millions of barrels of US crude oil over the next year as it increases its processing capacity, Bloomberg reported on Thursday.
The report indicated that the refinery has issued a tender to buy two million barrels of West Texas Intermediate (WTI) Midland crude per month for 12 months starting in July.
“The plant, built by Africa’s richest man, Aliko Dangote, has issued a term tender for the purchase of two million barrels a month of West Texas Intermediate Midland crude for 12 months starting in July, according to a document seen by Bloomberg. The tender closes on May 21,” the report said.
In April, it was noted that the 650,000 barrels per day Dangote Petroleum Refinery plans to leverage cheaper oil imports from the United States for up to a third of its feedstock as it begins production.
An earlier Bloomberg report from April 18 mentioned that the refinery has been shipping products for weeks and is preparing two units to enable gasoline output, promising a significant transformation of the fuel market in Nigeria and the surrounding region.
“Dangote is going to influence Atlantic Basin gasoline markets this summer and for the rest of the year,” stated Alan Gelder, Vice President of Refining, Chemicals, and Oil Markets at the consultancy firm Wood Mackenzie.
