Nigeria’s Dangote Petroleum Refinery is expanding its global footprint, with three cargoes of jet fuel, amounting to approximately 130 million litres, set for export to Saudi Arabia.
This follows the refinery’s recent shipments to the US, where it exported over two million barrels of jet fuel in March, highlighting its growing dominance in the international energy market.
According to ship-tracking data from Kpler, six vessels carrying around 1.7 million barrels of jet fuel from the refinery have arrived at US ports this month. Another vessel, the Hafnia Andromeda, is scheduled to dock at the Everglades terminal on March 29 with approximately 348,000 barrels of jet fuel.
With a refining capacity of 650,000 barrels per day, the Dangote Refinery, Africa’s largest refinery, has positioned itself as a key player in global fuel trade. Experts have attributed its entry into the US and Saudi markets to the high quality of its products and the growing confidence of international buyers in Nigerian exports.
“This is a significant achievement for Nigeria. The ability of Dangote Refinery to meet the stringent quality standards of markets like the US and Saudi Arabia is a testament to its world-class operations,” said Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprises (CPPE).
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The refinery’s entry into the US market coincided with a maintenance-related shutdown at the Phillips 66 Bayway refinery in New Jersey.
However, analysts believe that the shipments from Dangote could influence jet fuel prices in the US, especially as the country heads into its peak summer travel season.
“The surge in supply from Nigeria is expected to lower jet fuel prices in the US. March imports of jet fuel into the US have averaged around 226,000 barrels per day, the highest since February 2023,” said Steven Barsamian, chief operating officer of TankTiger, a US-based storage brokerage firm.
Beyond fuel exports, the refinery’s operations are reshaping Nigeria’s economic landscape.
Public policy expert Abimbola Oyarinu noted that if the country had developed its refining capacity earlier, it could have mitigated economic challenges such as inflation and unemployment.
“This is what we should have done a decade ago,” Oyarinu said. “Instead of exporting crude and importing refined products, we should have invested in refineries. Now, Dangote is not just saving Nigeria foreign exchange but earning it as well.”
Despite its successes, the refinery faces challenges, including concerns over regulatory and operational hurdles. Oyarinu warned that persistent obstacles to doing business in Nigeria could deter future investors.
“While the refinery is a game-changer, we must ensure an enabling business environment. If Dangote can succeed despite the odds, imagine how much more Nigeria could achieve with the right policies in place,” he added.