Dangote Refinery Exports Aviation Fuel to UK as Europe Faces Supply Crunch
- Nigeria has begun supplying aviation fuel to Europe amid Middle East disruptions
- European buyers are shifting supply sources due to constraints in traditional routes
- Dangote Refinery says demand for jet fuel and diesel is nearly exhausting its supply
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
Nigeria has begun supplying aviation fuel to Europe as disruptions linked to tensions involving the United States and Iran tighten Middle Eastern supplies, with a shipment from the Dangote Petroleum Refinery arriving in the United Kingdom.
A source at the refinery confirmed the development to PUNCH, noting that European countries have increasingly turned to the Lagos-based facility for jet fuel amid supply constraints.
Source: UGC
Europe turns to Nigeria amid supply disruption
According to the source, European buyers have become major off-takers of aviation fuel from the refinery, particularly as geopolitical tensions disrupt traditional supply routes.
The development follows a report by the Financial Times, which indicated that the last known shipment of jet fuel from the Middle East to the UK is expected soon, raising concerns about shortages as the Strait of Hormuz remains blocked.
Industry data cited in the report showed that a Nigerian cargo arrived at Milford Haven in the UK on Monday, reflecting a shift in global supply chains.
Global supply chains adjust to crisis
Market analysts say the disruption is leading to a rerouting of supply rather than an outright shortage.
Matt Stanley, head of market engagement for EMEA and APAC at Kpler, said the situation reflects adjustments in trade flows and pricing.
The UK has relied heavily on Middle Eastern imports for jet fuel, sourcing about half of its needs from the region in recent months. However, the current disruption has pushed buyers toward alternative suppliers, including West Africa and the United States.
Prices surge as shortages loom
Data from Argus Media shows that benchmark north-west European jet fuel prices have risen to about $1,744 per tonne, roughly double pre-crisis levels.
Europe typically sources around 40 per cent of its jet fuel through the Strait of Hormuz, making the disruption a significant shock to supply.
Consultants warn that airlines could begin to feel the effects by the end of April if the situation persists.
Janiv Shah, vice-president of oil markets at Rystad Energy, said fuel shortages could emerge in some countries, with higher costs expected to ripple across the aviation sector.
Dangote refinery plays growing role
The shift highlights the increasing role of West African refiners in global energy markets, particularly the Dangote refinery.
President of the Dangote Group, Aliko Dangote, said demand for aviation fuel has surged sharply.
Speaking to Al Jazeera, he noted that the refinery is close to exhausting its jet fuel and diesel supplies due to high demand, while petrol remains in surplus.
“The demand is so high… we have almost sold out our jet fuel,” he said.
Source: UGC
Multiple supply sources still active
Despite the pressure on supply, the UK government said it continues to receive shipments from various countries, including India, the United States, and the Netherlands.
The arrival of Nigerian cargoes underscores the growing importance of alternative suppliers as Europe adjusts to ongoing disruptions in traditional energy routes.
Dangote Refinery threatens full export
Legit.ng earlier reported that the Dangote Refinery has threatened to fully supply the international market and deny Nigerians fuel if the Nigerian authorities continue to grant import licences to importers.
Sources within the mega refinery disclosed that management is considering exporting all petroleum products in response to the continued issuance of petrol import licences, despite official claims to the contrary.
Experts warn that full exports could lead to fuel shortages and renewed price hikes in Nigeria's downstream petroleum market.
Source: Legit.ng
