Dangote has purchased 5 million barrels of US crude scheduled for delivery next month and in September, Bloomberg is reporting.
According to the report on July 11, the refining company
also started a tender process in which it intends to buy a further 6 million
barrels of American crude for September.
Dangote refinery, according to the report, has bought more
than 16 million barrels of West Texas Intermediate crude oil so far this year.
In August and September, the proportion it will purchase
from the US may increase, according to tenders for new supply seen by
Bloomberg.
“For Nigeria and Dangote, the use of US crude likely
reflects where there are spare barrels available to buy in the world and the
most competitive price,” the report reads.
“The refinery has been billed as a way of helping Nigeria
wean itself off foreign fuel supplies.
“The refinery near Lagos mostly runs on local crude supplies
that can reach the plant from offshore terminals in as little as a couple of
days.”
The report said tracking data indicates that the refinery
took in more than 41 million barrels of feedstock in the first half of the year
as it completed test runs and gradually raised processing rates.
About a quarter of that has been American supply, according
to Bloomberg.
With the latest purchase, Bloomberg said the inflows of
American feedstock may increase significantly.
In May, the refinery planned a purchase of 24 million
barrels of crude from the US for over a year.
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