The Dangote Petroleum Refinery has started exporting refined petroleum products to neighboring West African countries, signaling that the mega-refinery’s operations may soon disrupt 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 recently transported gasoline from the Dangote refinery to Togo, a West African country.
The vessel, CL Jane Austen, loaded over 300,000 barrels from Dangote and headed westward. This development follows a statement from Mustapha Abdul-Hamid, chairman of the Ghana National Petroleum Authority, who recently mentioned that Ghana is considering purchasing petroleum products from the Dangote refinery.
This move is aimed at reducing the country’s reliance on more expensive European imports, which cost Ghana approximately $400 million monthly. Abdul-Hamid explained at the OTL Africa Downstream Oil Conference in Lagos that buying from Nigeria would eliminate freight costs and lower the prices of goods and services.
“If the refinery reaches 650,000bpd capacity, all that volume cannot be consumed by Nigeria alone,” Abdul-Hamid said. “Instead of importing from Rotterdam, it will be easier for us to import from Nigeria, and I believe that will bring down our prices.”
Further developments include reports that the Dangote refinery is preparing to export fuel to South Africa, Angola, and Namibia. The PUNCH had reported two weeks ago that negotiations were underway with these countries, as well as four others: Niger, Chad, Burkina Faso, and the Central African Republic.
A credible source revealed that talks with Ghana, Angola, Namibia, and South Africa were in advanced stages, and initial discussions were underway with the other four countries.
According to the report, the petroleum shipment is currently floating off the coast of Lome, a well-known area for ship-to-ship transfers, though it’s uncertain where the CL Jane Austen’s cargo will ultimately be delivered.
The shipment, though relatively small compared to global gasoline production, marks the ramp-up of Dangote’s output and hints at the possibility of significant gasoline exports beyond Nigeria. This could potentially transform regional markets.
The refinery had previously shipped its first seaborne gasoline cargo to Lagos, a major commercial hub in Nigeria. However, whether large quantities of Dangote’s gasoline output will be exported remains to be seen.
Last month, the Nigerian government ended the state-owned oil company’s monopoly on purchasing fuel for domestic use but still permits the continued importation of fuel from Europe and the US, as per the regulatory framework.
The report also noted that a Dangote spokesperson declined to comment on the matter. Despite this, the export of refined products from Dangote is a notable step toward reshaping the regional fuel market and could lead to more affordable petroleum products in countries like Ghana, South Africa, and beyond.
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