The Dangote Petroleum Refinery & Petrochemicals maintains strong global positions in the energy sector by exporting two million barrels of jet fuel from its refinery to the United States during March.
The shipment to the United States followed three Saudi Arabian exports of jet fuel totaling about 130 million litres from Dangote Petroleum Refinery.
The refinery demonstrated its competitive edge against European players when exporting gasoline before expanding its operations to supply jet fuel to the U.S. and this threatens the competitive position of existing U.S. producers in the world’s largest jet fuel market.
The implementation of jet fuel exports from the Dangote Petroleum Refinery to U.S. ports has resulted in six vessels transporting 1.7 million barrels of jet fuel according to Kpler ship-tracking data during this month. The Hafnia Andromeda currently prepares to reach Everglades terminal on March 29 while transporting 348,000 barrels of jet fuel.
Global fuel markets recognize Dangote Refinery as a critical swing supplier because it operates from a 650,000 barrels per day (bpd) daily capacity at its facility.
Dangote Refinery halted its petroleum product sales in naira currency after both parties failed to reach an agreement on the naira-for-crude exchange with Nigerian National Petroleum Company Limited (NNPCL).
Read Also
The exceptional quality products from Dangote Refinery have received strong endorsement from the international market which experts identify as a major milestone for Nigerians.
Steven Barsamian from TankTiger expressed that the higher Nigerian supplies led to growing American jet fuel demand which will likely create cheaper prices before the peak summer traveling period starts.
Trade experts combined with storage brokers predict that imports of Dangote Refinery jet fuel to the US market will lower aviation fuel costs during this period. The US has continued its steady jet fuel imports from Dangote Refinery at levels reaching 226,000 bpd since February 2023 because global markets actively seek refinery products from Dangote Refinery,” Barsamian revealed.
Dangote Refinery started commercial operations in January 2024 before sending its products to different parts of the world. Dangote Refinery’s growing market position stems from its successful outperformance against European refiners in gasoline exports while the rise in US fuel imports also occurred because of the Phillips 66 Bayway refinery’s maintenance shutdown in New Jersey.
DR Muda Yusuf who heads the Centre for the Promotion of Private Enterprises (CPPE) recognized jet fuel exports to the US market as a triumphant milestone for Nigeria through its demonstration of refinery excellence and global market confidence in product quality.
Dr Abimbola Oyarinu as Public Policy Expert explained that Nigeria could have achieved greater economic strength through past operational refineries instead of exporting crude oil but importing refined petroleum products.
