Dangote Begins Search for Oil Tanker for Refinery, Sets Start Date

Dangote Begins Search for Oil Tanker for Refinery, Sets Start Date

  • Dangote Refinery has said that it wants to hire an oil tanker for a three-month contract to deliver supplies from West Africa to the refinery
  • The refinery stated that the contract, set to begin in mid-March, could be renewed for another three months
  • This could be an indication that the refinery is ramping up operations faster than anticipated

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

In the most recent indication that the physical oil market is getting tighter, Dangote's mega-refinery is moving to secure crude imports.

Dangote Begins begins search for oil tankers
Dangote Industries Ltd is looking to hire an oil tanker for a three-month contract. Photo Credit: Dangote Refinery, Andrew Holt
Source: Getty Images

Dangote Industries Ltd is looking to hire an oil tanker for a three-month contract to deliver supplies from West Africa to the refinery.

According to a document obtained by Bloomberg, the service, which is to begin in mid-March, might be extended for a further three months.

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This means that the largest refinery in Africa, which just started, is ramping up operations faster than anticipated.

The development is expected to strengthen futures prices, which have risen to their highest level since November, and tighten a market on the verge of oversupply.

The refinery began operations in January and has the capacity to process 650,000 barrels of oil per day.

In order to manufacture gasoline during the first phase of startup, when it hopes to run at 350,000 barrels per day, it has tapped into grades from the US and West Africa.

In a recent report, S&P Global estimated that the Dangote oil refinery may not reach a full complement of its operations until somewhere around the middle of 2025.

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This contradicted earlier projections that the Dangote Refinery may start producing 650,000 barrels per day at full capacity by the second quarter of 2024.

In an update on Nigeria, the new report stated that the recent partial commencement of operations was critical to the growth of the Nigerian economy.

Dangote refinery sets date to sell fuel

Legit.ng reported that the world's single train refinery, the Dangote Refinery, has made an essential move by issuing tenders to sell its first two fuel cargoes for export.

The development is an essential step for the newly launched refinery, which has generated a buzz in the industry.

A Reuters report quotes three sources saying that the first cargo of 65,000 metric tons of sulphur straight-run fuel oil, which Dangote has awarded to Trafigura, is due to load at the end of February.

Source: Legit.ng

Authors:
Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng