In a strategic move to diversify its crude oil supply, Nigeria’s Dangote Refinery has secured its first shipment of Algeria’s Saharan Blend crude from trading firm Glencore. The one-million-barrel cargo is set to arrive between March 15 and 20, marking a key milestone for the 650,000-barrels-per-day refinery as it scales up production.
According to industry sources cited by Argus, Dangote finalized the purchase of the premium light sweet crude from Glencore this week. However, neither party has officially confirmed the transaction, and details of the pricing remain undisclosed.
Saharan Blend is a highly sought-after crude due to its superior quality, featuring an API gravity of 45.3 and a low sulfur content of 0.1%. It is primarily sourced from Algeria’s Hassi Messaoud region and has traditionally been supplied to European markets. This latest deal, however, signals a growing shift toward emerging markets, with Dangote Refinery now leveraging Algeria’s premium crude to enhance its refining output.
ALSO READ: CHAMPION BREWERIES REPORTS N1.2BN PRE-TAX PROFIT
Market insights indicate that tankers loaded with Saharan Blend in February were not directed to Africa, suggesting that the cargo destined for Dangote will be loaded in March. A trader familiar with the deal highlighted that Algerian crude oil is well-suited for Dangote’s refining operations and is competitively priced compared to Nigerian crude oil.
Dangote Refinery has been actively seeking long-term crude supply agreements from international markets, including the United States. In September 2024, it reached an agreement with the Nigerian National Petroleum Company Limited (NNPCL) for the supply of 15 crude oil cargoes. However, only six cargoes were allocated.
Attempts to secure additional crude oil from International Oil Companies (IOCs) operating in Nigeria have faced hurdles, as IOCs either redirected Dangote to their international trading arms or cited existing supply commitments.
By
