What Dangote’s fuel export to US, others mean for Nigeria – Experts

Dangote Refinery made its first gasoline shipment to the United States in the final week of August, according to ship tracking data, marking a new milestone for its reach beyond Africa. Argus reported that a Gemini Pearl loaded around 300,000 barrels of gasoline at Dangote’s Port on August 26 for U.S., with a likely discharge […]

Dangote Refinery made its first gasoline shipment to the United States in the final week of August, according to ship tracking data, marking a new milestone for its reach beyond Africa.

Argus reported that a Gemini Pearl loaded around 300,000 barrels of gasoline at Dangote’s Port on August 26 for U.S., with a likely discharge at New York or New Jersey, according to trade data from Kpler.

This was not the first time the facility would export refined products to the US.

In March, it exported over two million barrels of jet fuel to America, reflecting its growing presence in the international energy market.

Six vessels carrying around 1.7 million barrels of jet fuel from the refinery were shipped to the US ports at the time.

Another vessel, the Hafnia Andromeda, is scheduled to dock at the Everglades terminal on March 29 with approximately 348,000 barrels of jet fuel.

Also this year, the refinery spread its tentacle to Saudi Arabia with hundreds of millions of litres exported to the Middle East country.

In July, the President of Dangote Industries, Alhaji Aliko Dangote disclosed that the refinery has begun exporting Premium Motor Spirit, selling approximately 1.35 billion litres of petrol to other countries worldwide in the past 50 days.

“Today, Nigeria has actually become a net exporter of refined products. Before I came to the podium, I asked my people how many tonnes of PMS we have actually exported. From June beginning to date, we have exported about 1 million tonnes of PMS, within the last 50 days,” he had said at the occasion.

The Dangote refinery has a refining capacity of 650,000 barrels per day and it is Africa’s largest single train refinery reshaping the global energy market.

The recent export of gasoline to the US reflects Dangote’s growing inroad into the global market amidst continued import of refined products into the country.

Daily Trust reports that despite the existence of Dangote refinery and other mini plants, importation of refined petroleum products has continued.

The latest shipment was the first direct gasoline export from Nigeria to America although Nigerian crude has long supplied US refiners.

 

…Good omen for Nigeria – Expert

Industry player and expert, Otunba Tunji Oyebanji said the market is international and it is a significant milestone for Dangote to export refined products to other markets.

He said if the crude market is an international market, there was nothing unusual for Dangote to export, saying Nigeria would even benefit from it.

He said, “The crude market is international. You sell, buy. It is only in Nigeria that we want something special. In fact it will pay Nigeria to be only exporting refined products instead of exporting crude because it means that we have added value to the crude.

“We will even make more money from it. I don’t understand why people are worried about it. That is why there should  be no control. At the end of the day it is the price that will determine the market, whether people will buy or they will not buy. So if he can sell at a higher price to export, let him do so.”

Another marketer who spoke with our correspondent on the condition of anonymity said the export to the US and other markets may have been driven by low sales.

“Maybe the demand isn’t as much. So he has to export. Also, he doesn’t like selling through the coastal way because the people who are here want to buy coastal, in a vessel but he would say, ‘No, come and be buying one, one truck.’ That is why he has those he called partners, maybe those ones agreed to his conditions.”