Dangote Refinery Ships Jet Fuel to US, Plans Maintenance Shutdown
By Patience Ikpeme
The United States has imported over two million barrels of jet fuel from the Dangote Petroleum Refinery & Petrochemicals in March, marking a significant development in global fuel trade.
The refinery, Africa’s largest single-train facility, is also scheduled to undergo a 30-day maintenance shutdown of its gasoline-making unit, expected to begin on June 1.
Data from ship-tracking service Kpler indicates that six vessels carrying approximately 1.7 million barrels of jet fuel from the Dangote Refinery arrived at US ports this month. An additional shipment of 348,000 barrels, carried by the Hafnia Andromeda, is expected to reach the Everglades terminal on March 29.
These shipments, from the 650,000 barrel-per-day refinery, are anticipated to reshape fuel trading in the Atlantic Basin, establishing a new supply source. This follows previous jet fuel exports to Saudi Arabia, demonstrating the refinery’s competitive standing against European refiners.
Steven Barsamian, Chief Operating Officer of TankTiger, suggested that the increased supply from Nigeria could lower jet fuel prices in the US, particularly ahead of the summer travel season.
Trade analysts and storage brokers anticipate that US jet fuel imports from Dangote Refinery will contribute to lower aviation fuel costs. US jet fuel imports in March reached an average of 226,000 barrels per day, the highest since February 2023.
The Dangote Refinery, which began production in January 2024, has exported products to multiple continents. The recent surge in US imports coincided with a maintenance-related shutdown at the Phillips 66 Bayway refinery in New Jersey. Analysts believe that the selection of Dangote’s products signifies its growing presence in international markets.
The refinery has also issued a tender to sell 128,000 metric tons of residual fuel oil in April, comprising 88,000 tons of low sulfur straight run fuel oil and 40,000 tons of slurry oil, with loading scheduled for April 10-12.
Economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprises (CPPE), Dr. Muda Yusuf, said that the jet fuel export to the US is a source of national pride, reflecting the refinery’s product quality and international trust. He noted that the US market’s stringent standards indicate the refinery’s high-quality output.
Dr. Yusuf called for support for the Dangote Refinery and similar facilities, emphasizing their role in enhancing Nigeria’s global position.
Public Policy Expert, Dr. Abimbola Oyarinu, stated that Nigeria’s economy would have been more stable with functional refineries. He acknowledged Dangote’s significant investment and its positive impact on foreign exchange earnings. He also expressed concern over potential sabotage and the challenges faced by local investors.
Dr. Oyarinu warned that the difficulties faced by local investors could deter future investments. He said that the Dangote refinery is a major achievement for Nigeria.
