HomeEconomyDANGOTE REFINERY TURNS TO LIBYAN CRUDE AS NIGERIAN SUPPLY TIGHTENS

DANGOTE REFINERY TURNS TO LIBYAN CRUDE AS NIGERIAN SUPPLY TIGHTENS

Dangote Refinery Expands Crude Sources, Reduces Dependence on Nigerian Oil

Dangote Refinery has increased efforts to diversify its crude oil supply sources, importing more crude from Libya and other African countries as it works to maintain high production levels at its 650,000-barrel-per-day facility in Lekki, Lagos.

According to crude tracking data from Argus Media, Nigerian crude accounted for 71 per cent of the refinery’s feedstock in July, a drop from 85 per cent recorded in June. The shift shows the refinery is relying more on foreign crude supplies to support operations.

The refinery processed an estimated 595,000 barrels per day (bpd) of crude in July. Although this was lower than the record 660,000 bpd processed in June, it remained significantly higher than the average level recorded last year.

July also marked the refinery’s most diverse crude mix so far, with five non-Nigerian crude grades delivered in a single month.

Apart from Nigerian crude grades such as Bonny Light, Qua Iboe, Escravos, Forcados, Amenam, Erha, CJ Blend and Utapate, the refinery received Libya’s Esharara, Angola’s Clov and Cabinda, Equatorial Guinea’s Lokele and Cameroon’s Ebome.

Libya’s Esharara has become an increasingly important part of Dangote Refinery’s supply chain, with July marking the third consecutive month the refinery received the light sweet crude grade after its first shipment arrived in May.

Another one-million-barrel cargo of Esharara is expected to arrive soon, further highlighting the refinery’s growing reliance on African crude alternatives.

The increased use of Libyan crude comes as imports of United States West Texas Intermediate (WTI) have stopped. Dangote has not received any WTI cargo since March, indicating a move towards African suppliers with similar refining qualities.

The refinery’s decision to diversify its crude sources is aimed at securing more reliable and commercially attractive supplies while reducing dependence on a single market.

The move also comes amid ongoing concerns over the availability and pricing of Nigerian crude, despite the country’s Domestic Crude Supply Obligation (DCSO), which requires local producers to supply crude to domestic refineries.

Crude deliveries to the refinery have improved significantly since maintenance work was completed on one of its crude distillation units earlier this year.

Average crude receipts rose to 550,000 bpd in the first half of 2026, compared with about 410,000 bpd throughout 2025. Since April, deliveries have averaged around 625,000 bpd, reflecting increased refinery activity.

Argus data also showed that the refinery processed a slightly heavier crude mix in July, with average API gravity falling to 35.8 degrees from 38.7 degrees in June, while sulphur content remained stable at 0.15 per cent.

Despite the changes in crude composition, Dangote’s average feedstock this year has remained slightly lighter and cleaner compared with 2025.

With more crude shipments expected in August, including cargoes of Amenam, Qua Iboe, Utapate and Bonga, the refinery is expected to maintain strong production levels in the coming weeks.

Headlinenews.news

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