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Dangote Refinery to Receive First Crude Shipment from Brazil

FILE PHOTO: A view of the newly-commissioned Dangote Petroleum refinery is pictured in Ibeju-Lekki, Lagos, Nigeria May 22, 2023. REUTERS/Temilade Adelaja/File Photo

The Dangote Oil Refinery, owned by Nigerian billionaire and Africa’s richest man Aliko Dangote, is getting closer to full capacity with its first crude import, a one-million-barrel shipment of Brazil’s Tupi oil slated to arrive in late August. This is a historic event for Nigeria, as it is the country’s first import from South America.

Despite having Africa’s largest oil production, Nigeria is severely reliant on imported fuels due to its underdeveloped local refining sector. The Dangote Oil Refinery is spearheading the effort to end this reliance. Local crude processing intends to improve the country’s energy security, reduce reliance on imports, and, ultimately, provide reduced fuel prices to consumers.

Diversifying crude sources is critical to the refinery’s success and Nigeria’s overall energy strategy. The Brazilian crude provided by state-owned Petrobras is cost-effective and well-suited to the refinery’s needs.

Earlier this week, the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) settled a supply conflict by agreeing with oil producers to distribute crude oil to domestic refineries at market pricing.

This comes after disagreements with foreign oil firms over high pricing and restricted crude availability. The resolution seeks to maintain a consistent domestic crude supply for Nigerian refineries, increasing resilience and limiting dependency on a single source.

The Dangote Petrochemical Complex, located near Lagos, is an important milestone in Nigeria’s economic development. The complex includes a one-million-metric-tonne-per-year polypropylene factory and two of Africa’s largest fertilizer trains, with a combined annual capacity of three million tonnes of urea.

The Dangote Oil Refinery promotes environmental responsibility with a closed-loop process water system, which generates 50MW of power from waste heat and produces cleaner Euro-V fuels. Furthermore, modern carbon capture methods reduce CO2 emissions, hence lowering the environmental effect of crude oil processing.

Within the West African market, the Dangote Oil Refinery has developed as a significant gasoil exporter, outperforming European refiners by utilizing its proximity and logistical advantages to grow its influence in adjacent regions.

As Nigeria increases its refining capabilities, the Dangote refinery is at the forefront of this transformative journey, promising the country’s future energy independence and economic progress.

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