Dangote Refinery is set to import crude from the US in the coming months,
Trafigura Group sold 2 million barrels of WTI Midland to Dangote refinery for end-February delivery, said traders with knowledge of the matter. This is the first time that the giant refinery has purchased non-Nigerian crude, traders told Bloomberg.
Someone wrote :
I became suspicious of this refinery the moment:
1. It was commissioned ahead of completion, but just in time for petroleum subsidy removal.
2. It told Nigerians that its products won’t sell below import mkt price.
3. It reported it’ll produce only aviation fuel & diesel from its distillation column, but not much-needed gasoline, contrary to scientific sense.
4. And now, NNPC that hurriedly bought a stake in this refinery won’t be able to supply its crude needs warranting it going for imported crude.
These all suggest a refinery that’s not producing anything but wants to distract Nigerians while importing refined products.
@MSingawa wrote as well :
I wrote about this sometime ago. This is only coming as a surprise to me because I didn’t expect it to happen this soon but I was sure it was going to happen.
Why?
Because Dangote Refinery is a global refinery and business therefore will operate based on global practice. The refinery was designed with a collective storage capacity of 4.7billion with about 2.4billion crude storage capacity. For smooth running of the refinery, it needs to have as much stored crude as possible to avoid operational issues due to inadequate supply. The refinery has so far received only 6m barrels of Agbami, Amenam, Bonny Light and CJ Blend Streams, all of Nigerian Crudes. How much is 6m (plus this 2m) out of 2.4billion?
At 650,000 barrels per day, 8m barrels will be exhausted in just 12 days of full operation and less than 30 days at half capacity. No business can commence operation without adequate raw materials on ground.
The Nigerian Government is just another source of Dangote’s sources and it’s practically evident that NNPCL can not satisfy Dangote with it’s supplies as they are even struggling to meet the OPEC’s quota of just 1.7m barrels per day. Nigeria could not meet up its quota throughout 2023 due to scanty and inadequate crude production as a result of Crude theft and other factors (I believe inadequate investment).
Crude Oil transactions are either in futures or on the spot. Nigeria has sold almost all its future production through loans and locked revenue streams. The best and only way for our Local Refineries to get adequate and steady supply of Nigerian Crude is when we have increased production output. Many oil fields development projects are ongoing but only God knows their delivery dates.
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Oil and Gas Development Projects are actually capital intensive. The capital requirement is too huge that our local firms cannot take up the challenge. This is evident in Marginal Field Development Programs. Almost all the companies that won the bid are yet to mobilize because they lack the financial prowess. International Oil Majors have over the last few years been divesting to Deep Waters Oil Fields as they have more operational security as well as profitability and lifespan. The movement cannot be unconnected to the persistent Oil Theft and increasing technical capacity of our local firms.
For Dangote and other local refineries to operate without supply disruption, Nigeria must increase production to at least meet it’s OPEC quota and the demands of the local market.
Info: This particular crude that was imported is a 2m Barrel- West Texas Intermediate (WTI ) Crude which is light, sweet crude oil that serves as one of the main global oil benchmarks. It has almost same quality as crude obtainable in Nigeria.
WE SHALL SEE THE END OF ALL THESE DANGOTE GAME….. we shall all see it…suddenly, Dangote now imports Crude to refine in Nigeria and sell back to Oyibo people….. And Nigerians must buy it expensive… No wahala
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