Dangote Refinery, owned by Africa’s wealthiest individual, Aliko Dangote, is set to diversify its crude oil sources by importing 2 million barrels of West Texas Intermediate Midland (WTI Midland) from the United States, marking the first instance of the refinery purchasing non-Nigerian crude.
The deal, expected to be finalized for end-February delivery, is reported by Bloomberg, citing information from traders familiar with the matter.
While the rationale behind a refinery in a major oil-producing nation turning to the US for crude remains unclear, industry sources suggest that pricing is likely a significant factor. West Texas Intermediate Midland barrels are known to be more cost-effective compared to grades like Nigeria’s, which are priced in relation to the North Sea grade Brent.
Aliko Dangote has revealed plans for the 650,000 barrel-a-day refinery to commence gasoline production in March of this year, signifying a strategic move in response to market dynamics and potential cost advantages associated with diversifying crude sources.
