Business

List of Countries To Import Petroleum Products From Dangote Refinery

Published by Tope Fakinlede on August 3rd, 2024.

List of Countries To Import Petroleum Products From Dangote Refinery

The Dangote Refinery, Nigeria’s $20 billion investment, has attracted significant interest from global markets. Key importers of petroleum products from the refinery include the United States, Spain, France, South Korea, Angola, Togo, Guinea, Belgium, Israel, and Singapore.

In related news, the National Association of Nigerian Students (NANS) has expressed strong support for the Dangote Refinery. This endorsement follows a recent tour of the facility, where students praised the refinery’s state-of-the-art operations and its potential benefits for Nigeria’s economy.

The Dangote Refinery has begun shipping various products such as fuel oil, gasoline, jet fuel, and naphtha, which are contributing to increased foreign exchange earnings for Nigeria. According to a recent presentation by Argus Group, the refinery is expected to reshape the petroleum trade flows between West Africa and other regions, also generating numerous job opportunities.

The refinery’s impact is significant: Nigeria’s petrol imports are projected to fall by 60%, from 400,000 barrels per day (bpd) in 2023 to 160,000 bpd by 2025. It is estimated that the country will need only 75,000 bpd in 2025, compared to 350,000 bpd in 2023. However, as domestic demand grows with the increasing population, import levels are expected to rise again from 2026 onward.

Additionally, Nigeria is anticipated to begin exporting diesel and aviation fuel starting in 2025, boosting the country’s foreign exchange reserves. The refinery’s operations are set to transform global product trade dynamics and necessitate new price benchmarks for the West African market.

Argus Group’s analysis also predicts that by 2025, Nigeria will shift from being a net importer of 400,000 bpd in 2023 to a net exporter of 160,000 bpd. Despite a temporary surplus in diesel and jet kerosine, the country’s net export position will diminish by 2040 due to rising demand.

To sustain these developments, continuous investment in the midstream and downstream sectors is crucial. Without ongoing investment, the net import position for West Africa is expected to increase significantly by 2040.

NANS has reaffirmed its commitment to supporting the Dangote Refinery, emphasizing its critical role in stabilizing Nigeria’s fuel sector. Vice-President of Dangote Industries Limited, Devakumar Edwin, acknowledged the students’ support and highlighted President Tinubu’s directive for crude oil to be sold in Naira, a move seen as beneficial for Nigeria.

Furthermore, Aliko Dangote, President of Dangote Group, reported that the refinery has received consistent orders for its products from various international markets. He reiterated the refinery’s commitment to high standards and transparency, inviting regulators to verify the quality of their products.

Overall, the Dangote Refinery represents a pivotal development for Nigeria, promising to reshape its energy sector and enhance economic growth.