The Dangote refinery has exported its first shipment of petrol to the United States, Reuters reported on Tuesday.
The delivery, carried by the tanker Gemini Pearl, marks a major milestone for the 650,000-barrel-per-day refinery located in Lekki, Lagos.
Energy market participants had long been waiting to see when its production would meet strict U.S. motor fuel standards.
The cargo, about 320,000 barrels, was purchased by global trader Vitol from Mocoh Oil, Dangote’s export partner, and sold to Sunoco, a North American fuel distributor.
Vessel-tracking data showed the shipment was discharged at Sunoco’s Linden, New Jersey facility.
“It was not immediately clear what volume Vitol sold to Sunoco and how much it will keep,” Reuters reported.
The refinery, one of the world’s largest, has faced a string of startup delays but has reshaped global energy flows since ramping up output last year.
“It is expected to significantly reduce Nigeria’s fuel imports, while exporting its surplus mainly to Europe,” Reuters said.
Additional shipments are underway. A second U.S. cargo, arranged by Glencore for Shell, is expected around September 19, while a third, also arranged by Vitol aboard the vessel Seaexplorer, is due around September 22.
Market conditions, however, may shift destinations.
Daily Times earlier reported that the shipment departed Nigeria on August 26 and was scheduled to arrive in New York and New Jersey on September 12.
According to S&P Global, “Three market sources confirmed that the ship loaded gasoline from the port, marking the inaugural export of the motor fuel to the US market.
“The delivery was agreed under a private bilateral deal, sources said, contrasting with previous open market tenders issued by Dangote for other products like residual fuel.”
Nigeria Still Importing Fuel
The international export comes even as Nigerian fuel marketers continue to import gasoline into the country. Despite its massive refining capacity, Nigeria remains heavily dependent on imports.
S&P Global observed that the Dangote Group has shown an appetite to diversify its consumer base and commercially optimise its trade flows.
Dangote Group President Aliko Dangote has said his goal is to make Nigeria and Africa self-sufficient in energy and turn the country into a net exporter of petroleum products.
However, some local petroleum traders have raised concerns over monopolisation and argue that imports must continue.
According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, out of 1.48 billion litres of gasoline supplied in June, only a fraction came from the Dangote refinery, with the bulk still imported.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, told Punch that marketers will always prioritise profit.
He explained: “If buying from the Dangote refinery would give importers a better deal, obviously, they will want to import from there. But if buying from the refinery does not give them that leverage, then they are free to import from whichever source, as long as the qualities are not compromised.”
Gillis-Harry described the U.S. export as a “very, very welcome idea because then it means that it will be another source of foreign exchange that will count in our balance of trade.”
SOURCE:: THE DAILY TIMES
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