The Dangote Refinery has achieved a milestone by exporting jet fuel to international destinations, including airports in Iceland, Tenerife, and London.
According to SP Global Commodity Insights, the refinery’s Nigerian-produced aviation fuel has reached key locations like Heathrow Airport, reflecting its growing production capacity.
The report also noted that between January and October this year, a significant portion of the refinery’s supply was delivered to the Lome transshipment hub off the coast of Togo.
South Korea has become the largest single export destination for the Dangote Refinery, importing 23,000 barrels per day (b/d) of naphtha.
In addition, substantial volumes of gasoil have been exported to Ghana and other West African countries from the $20 billion mega refinery, further solidifying its regional and global market presence.
Estimates indicate that at least eight African countries are preparing to import products from the Dangote Refinery when it reaches full operational capacity next year.
SP Global highlights that the refinery’s activities have already transformed Nigeria into a net exporter of jet fuel, naphtha, and fuel oil.
Commodity Insights forecasts that Nigeria could export nearly 50,000 barrels per day (b/d) more gasoil from Lagos than it imports by next year, with export volumes projected to almost triple by 2026.
The Dangote Refinery, originally focused on reducing Nigeria’s dependence on fuel imports, was not expected to export large quantities of petrol. However, with high fuel prices continuing to impact Nigerians, the company is now exploring export markets.
The report reveals that Nigeria’s state oil company, NNPC, previously relied on imports to meet about 350,000 barrels per day (b/d) of the country’s petrol demand. However, in November, NNPC announced plans to source all petrol supplies exclusively from domestic refineries.
Despite the shift, Dangote Refinery is projected to produce only about 50,000 barrels per day (b/d) of petrol as its residue fluid catalytic cracking unit reaches full capacity.
Meanwhile, the refinery has already committed to exporting 200,000 metric tons (mt) of petrol, which experts warn could lead to a domestic political crisis and put additional pressure on global refining margins.
Furthermore, improvements in fuel quality from Dangote have led Nigeria’s fuel regulator to restrict access to low-cost, substandard imports. With these higher standards, the government has also stopped shielding consumers from rising fuel prices, according to SP Global.
Recent reports show that jet fuel from Dangote Refinery, based in Lagos, now accounts for nearly two-thirds of Nigeria’s market share.
According to data from Energy Intelligence, a US-based oil and gas trends tracker, the 650,000 barrels per day (bpd) refinery has greatly reduced Nigeria’s dependence on imported aviation fuel, leading to a reduction in prices by about $2 to $3 per metric ton.
