Dangote Refinery Loading Bay. Credit: Dangote Refinery
Nigeria imported an average of 78,000 barrels per day of petrol between April and August, even as the Dangote Petroleum Refinery exported some of its gasoline output to other markets when favourable trading opportunities emerged, a report by Argus Media has shown.
The development comes as the refinery increases its supply of petroleum products to West African countries, with deliveries reaching a record 172,000 barrels per day in September, according to George Mayer-Bonnett, Deputy Editor, Oil Products at Argus Media.
The report said Nigeria’s average petrol consumption stood at 279,000 barrels per day during the five-month period, exceeding the Dangote refinery’s average output of 258,000 barrels per day.
However, Nigeria also imported 78,000 barrels per day of petrol over the period, allowing the refinery to export some of its production.
The figures show the coexistence of petrol imports into Nigeria and exports from the country’s largest refinery, as domestic demand, production and market opportunities influence the movement of petroleum products.
The refinery’s deliveries to West African markets rose from the previous record of 152,000 barrels per day in August to 172,000 barrels per day in September, according to Kpler data cited in the report.
The shipments covered countries across the region, from Senegal to Angola.
“Petrol accounted for the largest share of the September deliveries at 62,000 barrels per day. Diesel and gasoil shipments totalled 57,000 barrels per day, while jet fuel deliveries reached 36,000 barrels per day. Other clean petroleum products accounted for a further 17,000 barrels per day,” the report stated.
The figures underline the refinery’s growing role in supplying West African fuel markets, although the region continued to rely heavily on imports from outside the region.
West Africa received 516,000 barrels per day of refined petroleum products from external suppliers in September, according to Kpler. The volume was the second-lowest monthly level since the end of 2017.
Imports from the European Union, the United Kingdom and Norway fell to a five-month low of 282,000 barrels per day. The report also linked the refinery’s growing product supply to increased crude receipts at the Lekki plant.
Argus tracking showed that crude receipts averaged a record 665,000 barrels per day in September, surpassing the previous high of 660,000 barrels per day recorded in June.
Beyond petrol, the refinery’s production of diesel and jet fuel exceeded domestic demand, creating opportunities for exports.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that Dangote’s diesel output averaged 130,000 barrels per day between April and August, compared with Nigerian consumption of 98,000 barrels per day.
The difference indicates that diesel production exceeded domestic consumption by an average of 32,000 barrels per day during the period. The surplus was more pronounced in the aviation fuel market. Jet fuel output averaged 136,000 barrels per day, compared with domestic consumption of just 16,000 barrels per day.
The figures show that the refinery’s production of both products exceeded local demand, providing scope for supplies to overseas markets.
For petrol, however, Nigeria’s consumption remained higher than Dangote’s output, while imports continued to supplement domestic supply. But the Dangote Group said it was producing more petrol than the country could consume.
The report said the refinery was able to export some of its gasoline production when regional trading opportunities emerged, despite higher domestic demand.
“Gasoline presents a different picture. Nigerian consumption averaged 279,000 b/d during April-August, exceeding Dangote’s output of 258,000 b/d. But Nigeria also imported 78,000 b/d of gasoline over the period, allowing Dangote to export some of its own production when regional arbitrage opportunities emerged,” the report concluded.