Dangote Refinery Advances Fuel Supply Agreements with Eight African Nations

Dangote Refinery Advances Fuel Supply Agreements with Eight African Nations

The Dangote Refinery is progressing in negotiations with eight African countries to secure fuel supply agreements, according to reports from The Punch.

The refinery’s management is in advanced talks with South Africa, Angola, Niger, Chad, Burkina Faso, the Central African Republic, and Namibia to initiate fuel exports.

In addition to Premium Motor Spirit (PMS), the refinery has already begun exporting diesel to several African nations, reaching a significant volume of nearly 100,000 barrels per day in May.

Exports of aviation fuel have also risen, reflecting the facility’s expanding reach across regional markets.

During the launch of petrol production in September, Aliko Dangote, Chairman of the Dangote Group, emphasized the refinery’s impact on local and regional fuel markets, highlighting the facility’s capability to supply high-quality petrol, diesel, and polypropylene that meet international standards.

“This refinery will transform Nigeria’s and Africa’s oil and gas industry dynamics, meeting the demands of Sub-Saharan Africa with high-quality petrol that enhances engine longevity,” Dangote remarked.

In a related development, Ghana recently announced its intention to source fuel from the Dangote Refinery.

Mustapha Abdul-Hamid, Chairman of Ghana’s National Petroleum Authority, disclosed at the OTL Africa Downstream Oil Conference in Lagos that this move could save Ghana approximately $400 million in monthly fuel imports from Europe.

Despite this progress, pricing disagreements have emerged between Dangote Refinery and Nigerian petroleum marketers, with some marketers preferring imports over local sourcing due to perceived high prices at the refinery.

However, as the Dangote Refinery ramps up production and explores competitive pricing, Nigerian marketers may increasingly consider local procurement, especially if the refinery offers favorable terms, reliable supply, and efficient distribution.

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