Dangote refinery Archives

Fuel marketers accuse Dangote Refinery of distributing substandard petrol

Dangote Refinery Ships Petrol to United States

Nigeria’s Dangote Refinery has cleared a major hurdle on its path to global relevance, securing its first U.S. gasoline sales after meeting the country’s stringent fuel standards. The shipment was delivered via the tanker Gemini Pearl to Sunoco’s terminal in New York Harbor. This development positions Nigeria as a significant player in the refined petroleum market globally. Two additional shipments from the refinery are scheduled to arrive in the U.S. later this month. The shipment, carried aboard the tanker Gemini Pearl, was discharged on Monday at Sunoco’s Linden terminal in New York Harbor, according to vessel-tracking data and industry sources familiar with the deal. The move marks a pivotal moment for the 650,000 barrel-per-day refinery, as traders and refiners worldwide had been watching for proof that its output could compete in premium markets like the U.S. Reuters reports that Global trading giant Vitol purchased the Gemini Pearl’s 320,000-barrel gasoline cargo from Switzerland-based Mocoh Oil and resold most of it to U.S. fuel distributor Sunoco, the sources said. The exact volume Sunoco acquired was not disclosed but the delivery has been confirmed through shipping and customs data. The debut shipment will soon be followed by more. Beyond the U.S., the refinery has already tested new waters in Asia, sending about 90,000 metric tons of gasoline eastward in June, its first shipment outside West Africa. Another Dangote cargo, arranged by Glencore and sold to Shell, is scheduled to arrive in New York Harbor on September 19 aboard the MH Daisen. A third parcel, purchased by Vitol on the vessel Seaexplorer, is expected to dock around September 22. Sources cautioned, however, that final destinations may shift depending on market conditions. Dangote’s refinery, Africa’s largest and one of the biggest globally, has been ramping up operations after years of delays and high expectations. Long touted as a potential game changer, the Lagos-based facility is central to Nigeria’s effort to fix a paradox: being one of the world’s top oil producers yet chronically dependent on costly fuel imports. Crude rich but refinery poor, the country spends billions each year bringing in gasoline to meet local demand. Breaking into the U.S. market represents far more than a symbolic win. It demonstrates that the refinery’s products can meet some of the strictest quality and environmental standards in the global fuel trade, paving the way for exports to other premium destinations in Europe and Asia. Industry analysts say that if Dangote can consistently deliver to advanced markets, it could begin to reshape global trade flows and reposition Nigeria as not just a crude exporter but a serious player in refined products. It has also supplied low sulfur straight run fuel oil to Singapore and delivered two consignments of jet fuel to Saudi Aramco, indicating its widening global reach. To date, it has shipped roughly 1.7 million barrels of jet fuel to U.S. ports across six vessels, further cementing its growing role in international energy trade. For Dangote, these exports are more than commercial milestones. They signal a breakthrough into the world’s toughest markets and a step toward reducing Africa’s long standing dependence on imported fuel.

Dangote Refinery Suspends Discount Scheme Over Marketers’ Diversion Racket

Fola Badmus2 months ago2 months ago04 mins

The Dangote Petroleum Refinery and Petrochemicals has uncovered a fresh racket involving some of its affiliate marketers and strategic partners who were allegedly diverting discounted refined petroleum products for profit. This discovery has prompted the refinery to suspend its discounted fuel supply scheme with effect from July 13, 2025. Investigations revealed that certain marketers, who were granted discounted products intended to ensure affordability and steady nationwide supply, had been diverting loaded trucks to unregistered third-party marketers. This diversion allowed them to profit from the price differential while bypassing operational costs such as logistics and compliance. The discounted pricing scheme, designed to help Dangote’s registered affiliate marketers maintain stable profit margins and ensure nationwide product availability, was being exploited as some marketers resold products directly from the refinery’s tarmac at prices above the agreed subsidised rate. In a letter to all strategic partners signed by Fatima Dangote, Group Executive Director of Commercial Operations, the company stated: “DPRP Management is suspending the discounted price offered to Partners effective 13th July 2025 and working towards restructuring the scheme.” The refinery, however, clarified that all outstanding Product Release Notes issued at the discounted rate before the suspension date would remain valid. Payments completed before July 13 would still be honoured at the discounted rate. An oil and gas expert, Olatide Jeremiah, confirmed that some affiliate marketers had been diverting products to non-registered marketers to make quick profits. He noted that marketers were taking advantage of Dangote’s discount scheme and selling products at N819 per litre instead of the official N825, bypassing retail station operations. Recent market checks show that non-affiliated marketers who rely on imported fuel have continued to align their prices with Dangote’s registered marketers, with ex-depot prices averaging N820 per litre, down from N835 at the start of last week. Although the refinery did not publicly name the defaulting marketers, its strategic partners include MRS Oil, Heyden Petroleum, Ardova Plc, Hyde Energy, Optima Energy, Techno Oil, TotalEnergies, Garima Petroleum, Sunbeth Energies, Sobaz Nigeria Ltd, Virgin Forest Energy, Sixxco Oil Ltd, NU Synergy Ltd, and Soroman Nigeria Ltd. The refinery assured stakeholders that the strategic partnership program will continue, albeit with a restructured framework, and urged retail stations to maintain the recommended pump prices to avoid further market distortion.

Dangote Refinery Targets 100% Nigerian Crude Supply by End of 2025 — Bloomberg

Fola Badmus2 months ago2 months ago23 mins

Africa’s largest oil refinery, the 650,000-barrel-per-day Dangote Refinery, is poised to fully transition to sourcing its crude oil exclusively from Nigerian producers by the end of 2025, according to a report by Bloomberg. The refinery, which is already processing 550,000 barrels daily, received 53% of its crude from local sources in June, while the remaining 47% came from international suppliers including the U.S., Brazil, Angola, Ghana, and Equatorial Guinea. Devakumar Edwin, Vice President of Dangote Industries Ltd., told Bloomberg that the transition to 100% local sourcing is underway as several long-term foreign contracts are set to expire. “Personally, and as a company, we expect that before the end of the year we can transition 100% to local crude,” Edwin said during a recent interview at the Lagos-based facility. The $19 billion refinery, inaugurated in May 2023, is seen as a strategic solution to Nigeria’s long-standing reliance on fuel imports. Although Africa’s largest oil producer, Nigeria has historically exported crude for refining abroad and re-imported the finished products—a costly and corruption-prone cycle that the Dangote refinery aims to break. In July and August, Dangote is scheduled to receive five crude oil cargoes each month from the Nigerian National Petroleum Company (NNPC), with each shipment containing nearly one million barrels. Challenges and Outlook The road to full local sourcing has not been without obstacles. Nigeria’s oil sector has been hampered by crude theft, pipeline vandalism in the Niger Delta, and a shift in ownership of oil assets from international oil companies to under-resourced local firms. Despite these challenges, Edwin expressed confidence that improved cooperation between Dangote, local oil traders, and the Nigerian government will stabilize domestic supply chains. A Regional Beacon of Hope During a recent visit to the refinery, ECOWAS Commission President, Dr. Omar Alieu Touray, hailed the project as a “beacon of hope” for Africa, underscoring its significance in driving regional industrialisation and economic independence. The Dangote Refinery, when fully operational, is expected to drastically reduce Nigeria’s import bill, generate jobs, and cement Nigeria’s status as a net exporter of refined petroleum products.