Lagos, Nigeria: The Dangote Petroleum Refinery became the largest single exporter of aviation fuel globally in April. Specifically, the facility capitalised on international fuel shortages caused by conflicts in the Middle East.
Consequently, the plant shifted its operations to maximum aviation fuel output. According to S&P Global Commodities at Sea data, this output spike occurred right after the 650,000-barrel-per-day (bpd) plant reached full capacity in February.
Therefore, the refinery successfully closed deep gaps in the global energy market. Currently, the refinery processes 40 different types of crude oil. For example, it blends imported US WTI Midland crude with local Nigerian oil.
Chief Executive Officer David Bird stated that this merchant model yields 75 million liters of fuel daily. However, the firm must import specialised components, such as Bonny condensate, to meet these metrics.
Thus, the company is changing its business model to secure its market position. It is moving away from quick spot deals managed by trading firms.
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Instead, it is signing long-term supply deals directly with foreign states and airlines. For instance, the firm recently closed an exclusive supply contract with Ethiopian Airlines. Furthermore, it is building a four-berth marine jetty to host large transport ships.
Finally, the company is planning a USD 10 billion expansion project. This expansion will boost total capacity to 1.4 million bpd. As a result, the plant will begin blending heavy Middle Eastern crude grades.
