For the first time, Nigeria's Dangote refinery, which is the largest in Africa, has commenced importing crude oil from the United States.
The refinery's progress is noteworthy as it is anticipated to aid Nigeria in decreasing its dependence on imported fuel and transform into a country that exports refined products.
According to Bloomberg, traders familiar with the situation reported that Trafigura Group has recently sold 2 million barrels of WTI Midland to Dangote refinery, with the delivery scheduled for the end of February. The quality of US crude oil is typically higher than that of Nigerian crude oil, making it more convenient for refining purposes.
In addition, the United States plays a significant role in the production of shale oil, which is a form of unrefined oil obtained from rock formations through the utilization of horizontal drilling and hydraulic fracturing.
Over the past few years, the production of shale oil has experienced substantial growth, consequently establishing the United States as a prominent exporter of crude oil.
Nigeria aims to decrease its dependence on imported fuel by utilizing the Dangote refinery, which has the capacity to process 650,000 barrels per day.
The refinery is presently undergoing an increase in production, with the anticipation of achieving maximum capacity by the conclusion of 2024.
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