Dangote refinery imports first crude cargoes from UAE

The Dangote Petroleum Refinery has imported its first-ever crude oil cargoes from the United Arab Emirates, expanding its feedstock sources as it grapples with limited domestic crude supply.

According to a report by S&P Global Commodity Insights, the 700,000-barrels-per-day refinery purchased two cargoes from the UAE, marking its first crude imports from the Middle East after previously relying on Nigerian, other African, and United States crude grades.

The report said the purchases followed the resumption of Middle Eastern oil exports after an interim peace agreement between the United States and Iran eased concerns over shipping through the Strait of Hormuz.

Although the refinery was designed to process Nigeria’s light sweet crude, it has increasingly diversified its crude slate as production ramps up.

S&P Global noted that an agreement with the Nigerian National Petroleum Company Limited guarantees the refinery between 13 and 15 cargoes of Nigerian crude monthly in naira, helping reduce its exposure to foreign exchange fluctuations.

However, the arrangement has been affected by inadequate crude supply and operational challenges at export terminals, prompting the refinery to source additional feedstock from overseas.

Dangote Refinery Chief Executive Officer, David Bird, had earlier disclosed that supply constraints in Nigeria made it necessary to seek crude from other markets.

The report added that the refinery plans to double its processing capacity to 1.4 million barrels per day by the end of 2028, enabling it to refine about 80 per cent of Nigeria’s current daily crude production.

Bird also said the refinery intends to increase the proportion of heavier crude grades in its feedstock mix as part of its long-term strategy.

“We definitely want to heavy up the barrel,” he said, adding that the refinery would engage in crude blending and could process up to 30 per cent Middle Eastern crude on each processing train at full expansion.

According to S&P Global, about 70 per cent of the refinery’s crude imports in 2025 came from Nigeria, while 24 per cent originated from the United States, reflecting its growing diversification strategy.