The $20 billion Dangote Refinery has finalized plans to import crude oil from the United States, marking a significant shift in its sourcing strategy.

According to Vanguard, Traders familiar with the matter have revealed that Trafigura Group has already sold two million barrels of WTI Midland to the Dangote refinery, with delivery expected by the end of February 2024.

This move is noteworthy as it signifies the first time the refinery will be procuring non-Nigerian crude.

The decision comes amid the exponential growth in US oil supply over the past decade, reshaping the global market and extending its influence to regions like Asia.

The 650,000 barrel-a-day oil refinery, which commenced operations earlier this month, initially targets processing 350,000 barrels per day, with plans to gradually increase production toward its full capacity. Nigeria, a country heavily reliant on petroleum exports, is particularly impacted by the transatlantic deliveries.

While the refinery primarily sources domestic crude through a supply agreement with the trading arm of the state-owned NNPCL, recent developments indicate a diversification of its crude sources.

The refinery received its first shipment of Nigeria’s Agbami crude, facilitated by a trading unit of Shell, and subsequent deliveries included Nigeria’s Amenam, Bonny Light, and CJ Blend streams.

The Managing Director of Dangote Ports Operations, Mr. Akin Omole, expressed optimism about the refinery’s operations, stating, “Once the 6 million barrels are fully delivered, it will facilitate the initial run of the refinery as well as kick-start the production of diesel, aviation fuel, and Liquefied Petroleum Gas (LPG) before subsequently progressing to the production of Premium Motor Spirit (PMS).”

Designed for processing 100% Nigerian crude with the flexibility to handle other crudes, the Dangote Petroleum Refinery can process various African crude grades, Middle Eastern Arab Light, US Light tight oil, and crude from other countries.

The refinery aims to meet 100% of Nigeria’s refined product requirements, including gasoline, diesel, kerosene, and aviation jet, with a surplus for export.