The Dangote Petroleum Refinery has begun shipping refined petroleum products to neighboring West African nations, indicating to traders that the refinery’s operations could soon shake up regional fuel markets.
A Bloomberg report, citing data from Vortexa, Kpler, Precise Intelligence, a port report, and a ship-tracking platform, revealed that a tanker had transported a shipment of petrol from the Dangote Petroleum Refinery to waters off the coast of Togo, a neighbouring country. The report noted that the CL Jane Austen recently loaded over 300,000 barrels from Dangote and sailed westward. It is currently anchored off the coast of Lomé, a well-known location for ship-to-ship transfers.
While the shipment is small compared to global fuel trade, it signals an increase in Dangote’s production capacity and the potential to export significant volumes of petrol beyond Nigeria, which could disrupt regional markets. Last month, the refinery shipped its first seaborne petrol cargo to Lagos, a key commercial hub. However, it remains to be seen whether large quantities of Dangote’s petrol will be exported in the future.
Recent reports indicate that around eight African countries, including Ghana, Benin Republic, Togo, and South Africa, are expected to purchase petroleum products from the Dangote Refinery, which has a capacity of 650,000 barrels per day.
Earlier last month, Ghana’s chief oil regulator, Mustapha Abdul-Hamid, revealed that the country is considering importing petrol from Dangote Refinery as part of efforts to reduce its reliance on imports and ease pressure on its foreign exchange market. He explained that sourcing fuel from Nigeria would help lower the prices of goods and services by cutting freight costs.
Hamid stated “If the refinery reaches 650,000bpd a day capacity, all that volume cannot be consumed by Nigeria alone, so instead of us importing as we do right now from Rotterdam, it will be much easier for us to import from Nigeria and I believe that will bring down our prices”.
The refinery, with a processing capacity of 650,000 barrels per day, is set to become the largest in both Africa and Europe once fully operational, expected later this year or next. It is also positioned to significantly reduce Nigeria’s reliance on imported petroleum products.
