Dangote Refinery has made a significant push to expand its global footprint by increasing exports to Asia, responding to the rising demand for refined petroleum products.
As Asia continues to be a key hub for fuel consumption, particularly for shipping and aviation, Dangote’s refined products are now being delivered to critical markets, including Singapore, a major global oil trading center, as well as other Asian nations.
In a recent development, Singapore received another batch of low-sulfur straight-run fuel oil (LSSR) from Dangote Refinery, highlighting the refinery’s strategic shift to supply a region that heavily relies on imports for ship refueling.
This shipment, which consisted of approximately 85,000 metric tons of LSSR and 35,000 metric tons of slurry, marks another step in Dangote’s growing export operations.
According to data from shipping analytics firm Kpler, Asia has emerged as the leading destination for fuel oil exports from Dangote Refinery in 2024.
This follows the refinery’s first shipment of LSSR to Singapore in June 2023, with an approximate volume of 124,000 metric tons (787,400 barrels). A subsequent batch of around 157,000 metric tons was shipped in July 2023.
LSSR is often mixed with other fuels to produce low-sulfur fuel oil (LSFO), which is used for bunkering, or it serves as feedstock in various refining processes, further boosting its global energy market value.
Despite facing challenges with the Nigerian government, including the collapse of the Naira-for-crude deal that would have allowed Dangote to purchase crude in Nigeria’s local currency, the refinery has pressed on with its international expansion.
The deal, which could have reduced consumer costs, fell through when the government failed to honor the agreement.
Additionally, Dangote Refinery has struggled to secure sufficient crude from the Nigerian National Petroleum Corporation (NNPC), prompting the company to seek supplies from international markets.
Despite these hurdles, Dangote Refinery has continued to thrive, maintaining consistent production and solidifying its status as a key player in the global fuel trade.
Beyond Asia, Dangote Refinery has made notable strides in other global markets. The refinery has exported jet fuel to Saudi Aramco, the world’s largest energy company, and has supplied jet fuel to the United States, with shipments totaling around 1.7 million barrels across six vessels to U.S. ports.
Dangote Refinery’s strategic expansion not only caters to the growing demand in Asia but also positions the company as a formidable force in the global energy market.
This growth is in line with the refinery’s long-term strategy, ensuring it remains competitive and responsive to the evolving needs of global energy consumers.
