Why Dangote Refinery increased crude oil production from the US

• The Dangote Refinery has ramped up its crude lipid purchases from the US, pursuing inadequate section supplies
• Reports accidental the refinery has purchased the US Western Intermediate (WTI) benchmark 5 times since January 2025
• Experts accidental Nigeria is presently reeling nether the value of crude theft and inadequate output to conscionable section demands

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the system for implicit a decade.

The mega Dangote Refinery is progressively turning to the US for crude lipid supplies, pursuing home shortfalls.

Experts person described the allocation of 350,000 barrels per time to the refinery by the Nigerian National Petroleum Company Limited (NNPC) to the refinery arsenic a driblet successful the ocean.

Dangote Refinery prepares to deed afloat accumulation capacity, raises crude imports from the US. Credit: Bloomberg/Contributor
Source: UGC

Local refineries conflict for crude supplies

They disclosed that the Domestic Crude Supply Obligation (DCSO) contained successful the Petroleum Industry Act (PIA) is not capable for section refiners.

The DSCO allocates astir 450,000 barrels per time to section refineries, which is hardly capable arsenic much facilities outpouring up, scrambling for the allocations.

“Currently, Nigeria is struggling to conscionable its 1.5 cardinal barrels per time OPEC quota, and whitethorn not beryllium acrophobic with gathering the PIA obligations,” Adeola Yusuf, vigor argumentation expert and Team Lead astatine Platforms Africa, said.

Yusuf said the deficiency of section producers to conscionable obligations is liable for Dangote and different section refiners turning to planetary suppliers.

“Nigeria is struggling nether the value of crude lipid theft and accumulation shortfalls, and is not presently fixated connected section refineries,” helium said.

However, the Dangote Refinery bought a 3rd of its crude from the US, the bulk of which is the West Texas Intermediate (WTI).

Dangote Refinery boosts US crude purchases

According to Bloomberg’s vessel tracking, the cargo purchases are important due to the fact that they could person been sent to tankers successful Europe, helping to find the world’s astir indispensable lipid price.

Dangote’s US crude lipid purchases underscore Nigeria’s inability to boost output successful enactment with the country’s policies.

According to the report, Dangote’s accrued purchases supported the Brent marketplace a bit.

Experts expect WTI to support going to Dangote successful the future, but volumes volition beryllium connected price.

WTI blends connection Dangote advantages implicit Nigerian crudes that effect successful improved yields of reformate and amended gasoline blending capabilities.

Dangote receives US crude 5 times successful 2025

Officials astatine the Dangote Refinery said that the accrued usage of US crude shows the plant’s rising processing levels and a simplification of Nigerian crude that is disposable to buy.

The US blend is reportedly the largest watercourse of six grades, arsenic the benchmark is fashionable among traders.

Analysts accidental the WTI was added to the benchmark owed to concerns that others were dilatory depleting, making trading perchance volatile.

According to the Bloomberg data, successful June alone, Dangote is expected to person 14 cardinal barrels of WTI.

Aliko Dangote's crude lipid moves to ramp up accumulation with US crude intakes. Credit; Bloomberg/Contributor
Source: UGC

More vessels are scheduled to get astatine Dangote Refinery

Vitol Group, the lipid trading giant, was the biggest supplier of US crude to the 650 bpd facility.

The other crude flows to the mega installation besides coincided with anemic request for the blend successful Asia successful caller months owed to Chinese tariffs connected US crude and the availability of Abu Dhabi’s Murban crude.

In 2025, the refinery purchased crude from the US astir 5 times, with July consignment owed to get soon.

Dangote to respond arsenic NNPC, autarkic marketers little prices

Legit.ng earlier reported that Nigeria’s petroleum marketplace is experiencing a caller terms warfare arsenic autarkic marketers and financially backed filling stations crash prices beneath the N875 per litre sold by the Dangote Refinery spouse stations.

As of June 3, 2025, Al-Moruf Filling Station astatine the Power Line country successful Igando successful Lagos sells petrol astatine N865 per litre, Eunice filling presumption displayed N859, and MOJ sells for N865.

Meanwhile, NNPC Retail has besides adjusted its complaint to N870, adding to the increasing database of stations challenging Dangote’s dominance successful the petroleum retail market.

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Source: Legit.ng