Latest news with #Dangote
Business Insider
an hour ago
- Business
- Business Insider
Dangote exposes black market fuel cartels undermining refinery development in Africa
Speaking at the Global Commodity Insights Conference on West Africa organised by the Nigerian Midstream and Downstream Petroleum Regulatory Authority in partnership with S&P Global in Abuja, Dangote warned that these shadow networks are undermining efforts to build local refinery infrastructure by manipulating prices and supply chains with emphasis on the maritime fuel trade centered around Lome, Togo. He explained that international traders have long exploited the lack of refining capacity in Africa by storing and selling imported refined petroleum products offshore at inflated prices. ' The market is a uniquely African phenomenon, ' he said. ' International traders maintain floating storage of about two million tonnes of petroleum products just offshore. These were being sold at inflated prices, given the lack of local refining capacity. Immediately, the Dangote Refinery became operational, they decided to crash the prices.' Dangote argued that the move was deliberate. ' Make no mistake, those who profit from this system will do everything they can to prevent other refineries from emerging." "The whole essence of Lome is to ensure that no refinery operates in Sub-Saharan Africa. In fact, I don't see any new major refining project succeeding with the offshore Lome market in existence.' He warned that these shadow networks manipulate supply chains and undercut prices, ultimately deterring investment in large-scale refining infrastructure. ' We cannot continue to allow a parallel oil economy to dictate the fate of Africa's energy self-sufficiency, ' Dangote said. Africa's push for fuel sufficiency Dangote's comments come amid renewed efforts by African leaders to attract private capital into local refining infrastructure in order to reduce dependency on foreign fuel imports and retain more value within the continent. Despite efforts to expand refining capacity, Nigeria and other West African nations still import nearly 69% of their gasoline, according to Farouk Ahmed, head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority. In 2025, West Africa trades approximately 2.05 million metric tonnes of gasoline each month, yet only 31% is supplied by local refineries. Despite the region's position as a major hydrocarbon producer and a growing refining hub, it continues to depend heavily on fuel imports from Europe, the Middle East, and Asia. Africa's push for fuel self-sufficiency is driven by strategic reforms, infrastructure investments, and policy changes aimed at reducing reliance on imported petroleum products. . Aliko Dangote pointed to a major challenge undermining progress: the lack of harmonised fuel standards across African countries. Unlike Europe's unified system, each African nation maintains its own specifications.
Business Insider
11 hours ago
- Business
- Business Insider
1 million tons of petrol shipped overseas as Dangote refinery takes Nigerian fuel global
The Dangote Refinery, which this year began exporting Premium Motor Spirit (PMS), also known as petrol, to markets beyond Africa, recently highlighted a major milestone with regards to the initiative. According to the chairman of the business, and Africa's richest man, Aliko Dangote, the refinery exported up to 1 million tons of petrol. The Dangote Refinery has commenced the export of Premium Motor Spirit (PMS) beyond Africa, marking a transformative step in regional energy trade. In June and July 2025, the refinery successfully exported one million tonnes of PMS, signaling an increase in its operational scope. The facility achieved its first gasoline export to Asia in June 2025, followed by earlier low-sulfur fuel oil shipments to Singapore and multiple consignments of jet fuel to global markets. Alhaji Aliko Dangote, President of the Dangote Group, made the revelation on Tuesday at the Global Commodity Insights Conference on West African Refined Fuel Markets, which was organized by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in collaboration with S&P Global Insights. As reported by The Punch, the Nigerian billionaire noted that the refinery exported up to a million tons of fuel during June and July 2025. 'Today, Nigeria has actually become a net exporter of refined products. Before I came on the podium, I asked my people how many tonnes of PMS we have actually exported. From June beginning to date, we have exported about 1 million tonnes of PMS, within the last 50 days,' he said. This is a new milestone for the $19 billion, 650,000-barrel-per-day complex, which had hitherto concentrated its exports in West Africa since starting gasoline shipments in 2024. Dangote's young history with fuel exports Concerning Dangote's business of exporting fuel, a noteworthy breakthrough occurred in June 2025, when 90,000 metric tons of gasoline were sent to Asia, marking the refinery's first petrol export outside of West Africa. Mercuria, the trading powerhouse, was set to load the shipment on June 22. This move comes after an earlier April shipment of low-sulfur straight-run fuel oil (LSSR) to Singapore, indicating a deliberate push into Asian markets. The Dangote Refinery's global development has not stopped with fuel. It has also successfully exported two consignments of jet fuel to Saudi Aramco, the world's largest oil firm, and supplied nearly 1.7 million barrels of jet fuel to US ports via six boats. These moves underscore the refinery's growing stature and competitiveness in the global energy sector. This growth has begun to shake established markets. In January 2025, the Organization of Petroleum Exporting Countries (OPEC) stated that Dangote's oil push was beginning to disrupt Europe's refined fuel market. For decades, Europe maintained a profitable $17 billion annual gasoline export business to Africa. Experts now fear that Dangote's efforts may bring a stop to this long-standing trading partnership. As of April 2025, the refinery has more capacity than the top 10 biggest plants in Europe. Crude supply to Dangote On the supply side, the Dangote Refinery is making strategic moves towards self-sufficiency. According to Devakumar Edwin, Vice President of Dangote Industries, the refinery plans to rely solely on Nigerian crude by the end of 2025. In June, local producers supplied 53% of the crude processed, with the remaining 47% coming mostly from the United States. The factory now refines about 550,000 barrels of oil per day. Historically, the refinery has received crude from Brazil, Angola, Ghana, and Equatorial Guinea. However, greater cooperation among Nigerian oil producers, the federal government, and the refinery is expected to increase the share of locally sourced crude in the coming months. As the Dangote Refinery expands its reach and consolidates its supply chain, it is redefining Nigeria's role in global energy markets while simultaneously speeding Africa's economic self-determination.
Reuters
16 hours ago
- Business
- Reuters
US became net exporter of crude to Nigeria for the first time, EIA says
July 22 (Reuters) - The United States became a net exporter of crude oil to Nigeria in February and March, as crude demand on the U.S. East Coast slowed due to refinery maintenance and the Dangote refinery drove up Nigeria's demand for inputs, the U.S. Energy Information Administration said in a note on Tuesday. This is the first time that the U.S. has exported more crude oil to Nigeria than it imported. Nigeria is generally considered a source for U.S. crude oil imports, ranking ninth last year. Nigeria's Dangote oil refinery – the largest in Africa, located on the outskirts of Lagos – began processing crude in January 2024 after years of delays. The refinery is set to reach full capacity of 650,000 b/d this year, according to the EIA. Gross U.S. exports of crude to Nigeria touched 111,000 b/d in February and 169,000 b/d in March. Imports, which were at 133,000 b/d in January, dropped to 54,000 b/d and 72,000 b/d in February and March respectively. The decline in imports is largely due to maintenance at the Phillips 66 Bayway refinery New Jersey, per the EIA. However, imports increased later in the year as the Bayway refinery resumed normal operations in April, and Dangote underwent some unplanned maintenance. This trend seems more a snapshot of a very fluid market, rather than a permanent realignment, according to Eli Tesfaye, senior market strategist at RJO Futures. "The new refinery in Nigeria and some issues in securing domestic supplies played a role for those unique flows earlier this year. But going forward, with the refinery now aiming to secure domestic flows, and probably looking at other crude grades, it is difficult to forecast if the volume flowing from the U.S. to Nigeria will persist," agreed Giovanni Staunovo, an analyst at UBS.
Zawya
20 hours ago
- Business
- Zawya
Nigeria partners with S&P Global for West African petroleum price index
Nigeria has partnered with S&P Global Commodity Insights to develop a regional pricing benchmark for refined petroleum products in West Africa, the country's downstream regulator said on Tuesday. The initiative, launched at the West African Refined Fuel Conference in Nigeria's capital Abuja, aims to create localised indices for products such as petrol, diesel, aviation fuel and liquefied petroleum gas. West Africa is a significant oil and gas producer as well as a growing refining hub. But it is currently dependent upon posted prices from global reference markets, said Farouk Ahmed, head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority. "While these benchmarks are globally accepted, often they do not reflect the unique supply chain peculiarities, market dynamics and economic realities of the African continent," Ahmed said. The partnership will improve price transparency, support investment decisions and enhance energy security across the region, he added. OPEC member Nigeria, Africa's largest crude producer, is implementing reforms to liberalise its downstream sector as it positions itself as a regional trading hub. The Dangote petroleum refinery in the commercial capital Lagos, for example, with refining capacity of 650,000 barrels per day, started operations last year and has been ramping up production and seeking new markets. Nigeria currently produces some 31% of the refined fuel traded in West Africa, with that share expected to grow as new refining projects come online. (Reporting by Isaac Anyaogu; Editing by Joe Bavier)
Reuters
20 hours ago
- Business
- Reuters
Nigeria partners with S&P Global for West African petroleum price index
LAGOS, July 22 (Reuters) - Nigeria has partnered with S&P Global Commodity Insights to develop a regional pricing benchmark for refined petroleum products in West Africa, the country's downstream regulator said on Tuesday. The initiative, launched at the West African Refined Fuel Conference in Nigeria's capital Abuja, aims to create localised indices for products such as petrol, diesel, aviation fuel and liquefied petroleum gas. West Africa is a significant oil and gas producer as well as a growing refining hub. But it is currently dependent upon posted prices from global reference markets, said Farouk Ahmed, head of Nigeria's Midstream and Downstream Petroleum Regulatory Authority. "While these benchmarks are globally accepted, often they do not reflect the unique supply chain peculiarities, market dynamics and economic realities of the African continent," Ahmed said. The partnership will improve price transparency, support investment decisions and enhance energy security across the region, he added. OPEC member Nigeria, Africa's largest crude producer, is implementing reforms to liberalise its downstream sector as it positions itself as a regional trading hub. The Dangote petroleum refinery in the commercial capital Lagos, for example, with refining capacity of 650,000 barrels per day, started operations last year and has been ramping up production and seeking new markets. Nigeria currently produces some 31% of the refined fuel traded in West Africa, with that share expected to grow as new refining projects come online.
