Nigeria’s Dangote refinery, the largest in Africa, has begun importing crude oil from the United States for the first time.

This is a significant development for the refinery, which is expected to help Nigeria reduce its reliance on imported fuel and become a net exporter of refined products.

Trafigura Group sold 2 million barrels of WTI Midland to Dangote refinery for end-February delivery, traders with knowledge of the matter told Bloomberg.

US crude oil is generally lighter and sweeter than Nigerian crude oil, which makes it easier to refine.

Additionally, the US is a major producer of shale oil, which is a type of crude oil that is extracted from rock formations using horizontal drilling and hydraulic fracturing. Shale oil production has boomed in recent years, and it has made the US a major exporter of crude oil.

The Dangote refinery, which has a capacity of 650,000 barrels per day, is expected to help Nigeria reduce its reliance on imported fuel. The refinery is currently in the process of ramping up production, and it is expected to reach full capacity by the end of 2024.

 

 

 

 

 

 

(Business Day)