Yemisi Izuora
Dangote refinery is setting new processing record and has bought at least 16 million barrels of Nigerian crude for October arrival.
This is in line with recent months and much higher than last year’s average as the refinery ramps up processing, Reuters reported.
Dangote’s 16 million barrels, made up of monthly allocations from Nigerian National Petroleum Company and volumes bought in a tender, equal around 520,000 barrels per day. That accounts for most of the 700,000-bpd refinery’s monthly intake.
The plant is preparing for an initial public offering, in which feedstock supply is in focus for investors.
Its purchases will curb volumes of Nigerian crude available for export at a time of high demand due to the Iran war drastically cutting competing supply from the Middle East.
The final total may rise if Dangote procures more crude. Dangote did not respond to a request for comment.
The Lagos-based refiner received 565,000 bpd of Nigerian crude in August, according to Kpler data, nearly double last year’s average of 280,000 bpd.
In total, NNPC will supply Dangote with eight of its October Nigerian cargoes, and one U.S. WTI Midland cargo, a source familiar with the matter said.
That would equal the monthly record for NNPC supply to the refinery, after it provided a similar volume in April, May and August, Kpler data show.
The refinery bought a second WTI cargo for October from a different supplier in a spot tender, two traders said, as well as the extra Nigerian cargoes to make up the total of 16 million barrels.
Dangote has bought many different grades of crude from outside Nigeria, including from Libya and Guyana.