The Dangote Petroleum Refinery, located in Nigeria, has started sending refined gasoline to nearby West African countries. This is an important development because it suggests that the refinery’s operations could significantly impact the fuel markets in the region.
A recent report from Bloomberg highlights that a tanker ship, named the CL Jane Austen, has taken over 300,000 barrels of gasoline from the Dangote refinery to the waters off Togo, which is a neighboring country. This movement of fuel signifies the refinery is ramping up its production and gearing up for exports.
In a related note, the chairman of Ghana’s National Petroleum Authority, Mustapha Abdul-Hamid, mentioned last month that Ghana is exploring the option of buying fuel from this Nigerian refinery. Currently, Ghana imports fuel primarily from Europe, which is costly and ends up costing the country around $400 million each month. Abdul-Hamid believes that sourcing fuel from Nigeria instead of Europe could help lower prices in Ghana by cutting down on shipping costs.
He noted that the Dangote refinery is expected to reach a capacity of producing 650,000 barrels of oil daily. Such a high level of production means it wouldn’t be feasible for Nigeria alone to consume that much fuel, and this opens the door for more exports to countries like Ghana, as well as others in the region. Abdul-Hamid expressed optimism that importing from Nigeria would help lower prices across Ghana because it would eliminate some of the transportation costs associated with shipping fuel from Europe.
Additionally, recent reports indicate that Dangote is set to start exporting fuel to other countries including South Africa, Angola, and Namibia. There are also discussions in progress with four other nations: Niger, Chad, Burkina Faso, and the Central African Republic. A reliable source confirmed that these countries are in advanced talks with Dangote’s management to begin receiving fuel shipments.
Currently, the tanker with the gasoline shipment is stationed off the coast of Lome, Togo. This area is known for ship-to-ship transfers, which means that the fuel on the CL Jane Austen could be transferred to another ship and sent to different places, making it uncertain where the fuel will finally end up.
While this initial shipment might seem small when compared to the overall global gasoline market, it still represents the beginning of significant production and export from Dangote, which could ultimately affect fuel prices and availability in the region.
Last month, the Dangote refinery made its first shipment of gasoline to Lagos, Nigeria’s commercial center. However, it remains to be seen how much gasoline will eventually be exported beyond Nigeria.
Interestingly, the Nigerian government has recently lifted the monopoly held by its state-owned oil company on purchasing gasoline from the Dangote refinery for local use. Even so, the government has allowed continued imports of fuel from Europe and the United States as part of a regulatory framework.
Lastly, a spokesperson for Dangote was contacted for comments regarding these developments but did not provide any response.
