Nigeria’s Dangote Petroleum Refinery & Petrochemicals is making waves on the global energy stage as the United States imports over two million barrels of jet fuel from the world’s largest single-train refinery this March.
This milestone highlights the refinery’s growing influence beyond Africa and the Middle East, reaffirming its capacity to compete on an international scale.
Experts believe this development is a source of pride for Nigeria, as it underscores the exceptional quality of Dangote Refinery’s products and the confidence the international market has placed in the facility.
According to data from ship-tracking service Kpler, six vessels carrying approximately 1.7 million barrels of jet fuel from the Dangote Refinery have arrived at various US ports this month.
Another shipment, carried by the vessel Hafnia Andromeda, is set to dock at the Everglades terminal on March 29 with an additional 348,000 barrels of jet fuel.
With a refining capacity of 650,000 barrels per day (bpd), Dangote Refinery, the largest in Africa, is demonstrating its ability to shape global fuel trading dynamics.
Analysts suggest that the refinery is emerging as a critical swing supplier in the Atlantic Basin, capable of influencing price and supply trends in the region.
This recent shipment to the US follows three major jet fuel exports to Saudi Arabia, totalling approximately 130 million litres.
In addition to its competitive edge in jet fuel production, the refinery has also made significant strides in gasoline (PMS) exports, challenging European refiners and further establishing itself as a key player in international markets.
The influx of jet fuel from Nigeria is expected to have a direct impact on fuel prices in the US.
According to Steven Barsamian, Chief Operating Officer of TankTiger, the surge in supply from Dangote Refinery is likely to drive down jet fuel prices ahead of the peak summer travel season.
Trade analysts and storage brokers project that the increased imports will ease aviation fuel costs, a welcome development for airlines and travellers.
March imports of jet fuel into the US have averaged around 226,000 bpd, marking the highest level since February 2023.
The demand for Dangote’s products is, therefore, indicative of their competitiveness on the global stage.
Since commencing operations in January 2024, Dangote Refinery has exported its products to multiple continents.
While the surge in US imports was partly influenced by a maintenance-related shutdown at the Phillips 66 Bayway refinery in New Jersey, analysts argue that the selection of Dangote’s products underscores its rising presence in international fuel markets.
Industry observers point out that Dangote Refinery’s ability to successfully compete with European refiners on gasoline exports and now challenge US domestic producers on jet fuel is a testament to its operational efficiency and product quality.
Economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprises (CPPE), Dr Muda Yusuf, emphasised the importance of this achievement for Nigeria.
He noted that exporting jet fuel to the United States signifies a new era for the country’s oil and gas sector, proving that Nigerian refineries can produce high-standard products fit for the world’s most stringent markets.
“Nothing could be more prideful for us as a country than the fact that we now have a refinery producing products that can be exported to the United States.
“It speaks to the quality, standards, and trust that international communities have in Dangote Refinery because these are markets that don’t compromise on quality,” Dr Yusuf said.
He further stressed the need for both the Nigerian government and its citizens to support the refinery’s operations, as its success has far-reaching implications for the country’s reputation and economic strength.
Former Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr Yusuf added, “That is why all of us, citizens and the government, should do everything to support the refinery, as it is breaking many barriers and boosting our country's reputation.
“The lesson here is that we should support Dangote Refinery and other refineries with similar capacities, as they can provide us with significant leverage.”
Public policy expert Dr Abimbola Oyarinu stated that Nigeria’s economic challenges could have been mitigated had the country developed functional refineries much earlier.
He lamented that for decades, Nigeria exported crude oil while relying on costly imports of refined petroleum products.
“This is something that should have been addressed since 2014. Things wouldn’t have reached this point, such as high inflation and unemployment, if we had a functioning refinery.
“However, both the government and the people failed to take action until Dangote stepped in with significant investment,” Dr Oyarinu noted.
He further stressed that the Dangote Refinery is not only reducing foreign exchange outflow but is also bringing in much-needed foreign currency to Nigeria through exports.
However, he warned that despite the refinery’s positive impact, certain individuals and groups are still intent on undermining its progress.
“The Dangote Refinery is not only reducing foreign exchange outflow, but it is also bringing in foreign exchange.
“It is unfortunate that despite this, some elites and those in power are still intent on sabotaging the refinery and Dangote himself,” he said.
Dr Oyarinu also cautioned that if the Nigerian business environment remains difficult, it could deter potential investors.
He pointed out that while Dangote’s achievements are commendable, future investors might hesitate to invest in Nigeria due to the obstacles and challenges the refinery has faced.
“This is something the country should be proud of. We previously had a mono-economy, reliant solely on oil exports, but Dangote has helped diversify the sector by selling finished products to international markets.
“However, which investors would want to invest in Nigeria after seeing what Dangote is going through?” he queried.
Copyright Notice:
All rights reserved. The content on this website, including text and other digital materials, may not be reproduced, published, broadcast, rewritten, or redistributed in whole or in part without the express written consent of THE NEWS ACCELERATOR NETWORK.
For advertising inquiries, news coverage, or press releases, please contact us at thenewsac
celeratornetwork@gmail.com or call 08144048512, 08051017159.
Post a Comment