Saudi Arabia will receive three jet fuel cargoes from Dangote Petroleum Refinery, totalling over 130 million litres.
This comes after the refinery exported more than two million barrels of jet fuel to the US in March, underscoring its increasing power in the global energy market.
Six ships carrying over 1.7 million barrels of jet fuel from the refinery landed at the US ports this month, according to ship-tracking data from Kpler. On March 29, the Hafnia Andromeda, another ship carrying about 348,000 barrels of jet fuel, is expected to dock at the Everglades facility.Â
Africa’s largest refinery, the Dangote Refinery, has established itself as a major player in the world fuel trade with a daily capacity of 650,000 barrels. The high calibre of its products and the increasing trust that foreign consumers have in them have been cited by experts as the reasons for its breakthrough into the US and Saudi markets.
This is a noteworthy accomplishment for Nigeria. Muda Yusuf, chief executive officer of the Centre for the Promotion of Private Enterprises (CPPE), stated, “Dangote Refinery’s world-class operations are demonstrated by its ability to meet the strict quality standards of markets like the US and Saudi Arabia.”
The Phillips 66 Bayway refinery in New Jersey shut down for repairs shortly after entering the US market.
Analysts, however, think that the Dangote cargoes may impact US aircraft fuel prices, particularly as the US enters its busiest summer travel season.
The supply increase from Nigeria is anticipated to decrease the cost of jet fuel in the US. The US imported 226,000 barrels of jet fuel per day on average in March, the most since February 2023, according to Steven Barsamian, chief operating officer of TankTiger, a storage broking company based in the US.
Public policy expert Abimbola Oyarinu pointed out that the nation may have avoided economic problems like unemployment and inflation if it had increased its refining capacity sooner.
Oyarinu stated, “This is what we ought to have done ten years ago. We need to have made refinery investments rather than exporting crude and importing processed goods. Now, Dangote is not only preserving Nigerian currency, but also earning it.”
Notwithstanding its achievements, the refinery still faces difficulties, such as operational and regulatory barriers. Oyarinu cautioned that ongoing barriers to doing business in Nigeria may put off potential investors.
“While the refinery is a game changer, we must also create an enabling business climate. Imagine how much more Nigeria could accomplish with the correct policies in place if Dangote can succeed in spite of the obstacles,” he concluded.
