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- The Dangote Refinery consumed 13% of Nigeria’s crude oil exports and domestic supply in 2024
- The refinery currently receives about 300,000 barrels of crude oil daily from the Nigerian National Petroleum Company Limited (NNPC)
- Reports say Nigeria imported about 47,000 barrels of oil daily from the US in 2024 despite being a major exporter
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Dangote Refinery retained 13% of Nigeria’s crude oil exports and domestic supply in 2024.
A new report disclosed that the development increased Nigeria’s domestic share of oil exports by 2% in 2023 and marginally cut its European exports.
Source: UGC
NNPC to continue crude-for-loan deals in 2024
Despite being a significant oil producer and net exporter, Nigeria imported 47,000 barrels daily of US oil in 2024, which experts describe as unusual for an oil-producing country.
The development comes amid reports saying that the Nigerian National Petroleum Company Limited (NNPC) will continue to service its crude-for-loan obligations until 2029 as the demand for crude by local refineries rises.
NNPC’s debts come from several crude-for-loan arrangements that tied Nigeria’s crude oil production to several financial obligations.
However, the report states that the Lekki-based mega refinery and other new facilities in the global south have changed the flow of crude amid sanctions on Russian oil.
Dangote Refinery contributes to Nigeria’s oil imports
The $20 billion refinery contributed to the rising volume of Nigeria’s crude imports from the US.
The refinery received its first US Western Texas Intermediate (WTI) shipment in November 2024.
The Dangote refinery's shipments from the US enhanced Nigeria’s oil imports from the US last year, as the NNPC could not supply crude to the refinery.
According to the report, global crude oil volume exports in 2024 dipped by two percent, the first drop since the COVID-19 pandemic.
Experts attributed this to weak demand growth and new trade routes caused by the crisis, sanctions, new pipelines, and refineries.
Buyers shun Russian oil
The Russian invasion of Ukraine and the Middle East conflict caused several rerouting of tanker shipments. At the same time, sanctions on Russia and Iran forced European and South American importers to seek alternative suppliers.
Due to the heartless invasion of Ukraine by Russia, European refineries reduced imports from Russia while enhancing purchases of oil from the US and the Middle East.
According to reports, attacks on vessels in the Red Sea due to the Gaza War led to higher shipping costs from the Middle East, so refineries turned to the US and Guyana.
Reports say Iraq’s exports dipped by 82,000 barrels per day, while the UAE saw a 35,000 barrels per day decline.
However, Europe upped imports by 162,000 barrels daily from Guyana and 60,000 from the US.
India and China patronised Russia’s oil passionately, while Europe and South America turned it down.
NNPC may reduce crude supply to Dangote Refinery
Legit.ng earlier reported that the Nigerian government may reduce crude supply to the Dangote Refinery, depending on production output.
The development comes amid the coming on-stream of Port Harcourt and Warri refineries, which may pressure crude supply.
The two refineries have a combined production capacity of 135,000 barrels per day and are managed by the NNPC.
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Source: Legit.ng
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