The Dangote Petroleum Refinery has commenced the export of refined petroleum products to neighboring West African nations, indicating to traders that the operations of this mega-refinery could soon disrupt regional fuel markets.
A recent report by Bloomberg, citing data from Vortexa, Kpler, Precise Intelligence, a port report, and a ship-tracking platform, noted that a tanker has transported a shipment of gasoline from the Dangote Petroleum Refinery to waters off the coast of Togo, a neighboring West African country. Specifically, the vessel, CL Jane Austen, recently loaded over 300,000 barrels from the Dangote facility and subsequently navigated westward.
Moreover, the chairman of the Ghana National Petroleum Authority, Mustapha Abdul-Hamid, indicated last month that Ghana is contemplating purchasing petroleum products from the Dangote refinery.
This move aims to mitigate the country's reliance on more expensive imports from Europe, which currently cost approximately $400 million monthly.
During the OTL Africa Downstream Oil Conference held in Lagos, the NPA chairman expressed that importing from Nigeria rather than Europe would decrease the prices of various goods and services by eliminating freight costs.
He stated, "If the refinery reaches a capacity of 650,000 barrels per day, that volume cannot be consumed solely by Nigeria. Therefore, instead of importing as we currently do from Rotterdam, it would be more feasible to import from Nigeria, and I believe that would reduce our prices."
Circleson Television reported two weeks ago that the refinery is preparing to initiate fuel exports to South Africa, Angola, and Namibia. The report also indicated that four other African countries—Niger Republic, Chad, Burkina Faso, and the Central African Republic—have begun negotiations with the refinery.
A reliable source confirmed that discussions are well-advanced with Ghana, Angola, Namibia, and South Africa, while initial dialogues are occurring with Niger, Chad, Burkina Faso, and the Central African Republic regarding fuel procurement.
The report further highlighted that the petroleum product shipment is currently located off the coast of Lome, a region frequently utilized for ship-to-ship transfers. The final destination of the CL Jane Austen’s cargo remains uncertain; while it is presently off Togo, the area is commonly used for such transfers, suggesting that the fuel could ultimately be redirected elsewhere.
"Although the shipment is modest in the context of the global gasoline market, it signals the ramp-up of production at Dangote’s facility and the potential for significant volumes of gasoline exports beyond Nigeria, which could profoundly affect regional markets."
Last month, the refinery successfully dispatched its inaugural seaborne gasoline cargo to Lagos, a nearby commercial hub. The extent to which Dangote’s gasoline output will be exported in larger quantities remains to be determined.
The Nigerian Federal Government terminated the monopoly of the state-owned oil company on purchasing fuel from the plant for domestic consumption last month. However, it has permitted the continued importation of fuel from Europe and the United States by regulatory frameworks.