How Dangote refinery’s exports altered dynamics in global fuel trade

The New Diplomat
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By Obinna Uballa

Nigeria’s Dangote refinery has entered the global spotlight with its first shipments of petrol to the United States, underscoring the facility’s potential to reshape international fuel flows, even as African leaders press for stronger regional collaboration on energy security.

Vessel-tracking data showed that top trader Vitol and US distributor Sunoco took delivery of about 320,000 barrels of petrol from the 650,000 barrel-per-day Lagos-based refinery aboard the tanker Gemini Pearl.

Reports said the cargo was discharged at Sunoco’s Linden terminal in New York Harbor, marking a breakthrough in the refinery’s compliance with US motor fuel standards.

A second cargo, sold by Glencore to Shell on the vessel MH Daisen, is due in New York on September 19, while a third, also acquired by Vitol, is scheduled to arrive aboard the Seaexplorer around September 22, THISDAY reported.

Although the shipments confirm Dangote’s ability to meet international demand, industry sources said the refinery’s petrol unit could shut for two to three months for repairs, limiting further exports in the short term.

The milestone comes as the International Energy Agency (IEA) warns that the world must spend $540 billion annually on oil and gas exploration to sustain current output levels, given faster depletion rates from shale production and maturing conventional fields.

“A lack of upstream investment would remove the equivalent of Norway and Brazil’s combined output each year,” IEA Executive Director Fatih Birol cautioned, noting that demand shows little sign of peaking soon.

Against this backdrop, Nigerian National Petroleum Company Limited (NNPC) Group Chief Executive officer, Bayo Ojulari, called on African nations to take ownership of their energy policies and harness resources for regional growth.

Speaking at the African Petroleum Producers’ Organisation (APPO) CEOs Forum, Ojulari stressed that declining European investment in fossil fuels makes it imperative for Africa to secure its own energy future.

“Africa must take ownership of its resources and policies. With our vast base and improved governance structures, the continent can secure its energy destiny,” he said.

He highlighted strategic projects including the Ajaokuta–Kaduna–Kano Gas Pipeline and the Nigeria–Morocco Gas Pipeline, which aim to deepen cross-border integration and expand regional energy trade. He also disclosed that Nigeria achieved 100 per cent pipeline availability for the first time in 20 years, boosting investor confidence in the resilience of its infrastructure.

By benchmarking against global leaders such as Petrobras, Petronas and Saudi Aramco, Ojulari said NNPCL was ready to drive Africa’s collective energy progress through knowledge sharing and collaboration.

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