Vitol, Trafigura, BP Lead Fuel Purchases from Dangote Refinery
TLDR
- Vitol Group, Trafigura Group, and BP Plc are key buyers of fuel from Nigeria's Dangote oil refinery near Lagos.
- The refinery, aiming for full capacity of 650,000 barrels per day, has loaded nearly 6 million tons of fuel since starting operations in mid-2024.
- Initial shipments from the Dangote refinery include diesel and fuel oil, with gasoline and jet fuel also part of the output.
Vitol Group, Trafigura Group, and BP Plc are the primary buyers of fuel from Nigeria’s massive Dangote oil refinery, near Lagos, which has begun to shift the dynamics of petroleum trading across Africa and Europe.
The refinery, set to reach full capacity of 650,000 barrels per day, started operations around mid-2024 and has since loaded nearly 6 million tons of fuel, equivalent to about 45 million barrels, according to data from Geneva-based analytics firm Precise Intelligence.
In October, the Dangote refinery’s loading rates averaged 35,000 tons of fuel daily, and the plant currently processes approximately 420,000 barrels of crude each day. Initial shipments are mainly composed of diesel (automotive gasoil) and fuel oil, which together account for over 60% of the fuel being collected. Gasoline and jet fuel are also part of the refinery’s output.
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Key Takeaways
The Dangote refinery’s entry into fuel production is reshaping regional oil markets by increasing Nigeria’s refined fuel exports and reducing its crude oil surplus. With a capacity surpassing that of any single refinery in Europe or Africa, Dangote’s production contributes to a shift in regional fuel flows, potentially reducing Africa’s reliance on imported refined products. The involvement of major trading firms like Vitol, Trafigura, and BP underscores the refinery’s strategic importance. These firms’ interest reflects the growing demand for Africa-based refining capabilities, reducing shipping times and costs associated with transporting refined products from distant refineries.
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