NNPC Doubles Crude Supply to Dangote Refinery to 10 Cargoes
• Punch Newspapers • Business
In March 2024, the Nigerian National Petroleum Company (NNPC) doubled its crude oil supply to Dangote Petroleum Refinery, increasing the delivery from an average of five cargoes monthly to ten. This strategic move aims to improve fuel availability in Nigeria amidst global supply disruptions, particularly due to tensions in the Middle East. Aliko Dangote, president of the Dangote Group, confirmed this development in a report by Bloomberg. The refinery's shipments include six cargoes paid in naira and four in dollars. Despite this increase, the refinery operates below its full capacity, requiring 19 cargoes monthly for optimal functioning. The NNPC's allocation of seven cargoes for May indicates a continued effort to boost domestic fuel production. However, Dangote warned that limited access to local crude production could drive up operational costs, as international oil companies prefer to sell crude to traders at higher prices. The refinery also exported 17 cargoes of petroleum products to African nations in March, highlighting its growing role as a key supplier in the region.
Topics: Business, Oil and Gas