•Impact expected to lower prices of aviation fuel in peak summer  

•Experts hail  firm for successfully accessing new markets

•MAN: Dangote production of polypropylene to revive textile industry,  save Nigeria $267m 

•Firm issues tender for 88,000 tons of low sulphur, 40,000 tons slurry oil  

•May shut down partially for routine maintenance June 1

Emmanuel Addeh in Abuja and Peter Uzoho in Lagos

In historic business deals, the Dangote Petroleum Refinery yesterday announced that the United States imported over 2 million barrels of jet fuel from the 650,000 bpd facility this March  alone, underscoring the growing global impact of the world’s largest single-train refinery, located in Lagos.

The entrance of the Dangote refinery into the US market is expected to see jet fuel hit a two-year high in the country this month, as well as lower the prices of the aviation fuel in the peak summer travel season, according to trade analysts.

Data from ship-tracking service, Kpler,  referenced by a statement from the Dangote refinery, showed that six vessels carrying around 1.7 million barrels of jet fuel from the refinery arrived at US ports this month, while another vessel, the Hafnia Andromeda, is set to arrive at the Everglades terminal on March 29, with approximately 348,000 barrels of jet fuel.

This shipment to the US followed the export of three cargoes of jet fuel, totalling around 130 million litres, from Nigeria to Saudi Arabia by the Dangote refinery, which has already demonstrated its ability to compete with European refiners on petrol exports.

It is believed that the jet fuel shipments to the US could also challenge the economics of domestic producers in the world’s largest fuel-consuming nation.

Chief Operating Officer of TankTiger, a midstream logistics and independent brokerage and consulting clearing house, Steven Barsamian, confirmed that the deals would likely lower jet fuel prices in the US ahead of the peak summer travel season.

‘’The surge in demand, partly driven by the influx of supply from Nigeria, is expected to lower jet fuel prices in the US ahead of the peak summer travel season,” he said.

Demand to lease storage tanks for jet fuel in Houston and New York Harbor in April is averaging around 700,000 barrels, five to six times the average monthly demand, it was learnt. US jet fuel imports in March have averaged around 226,000 bpd, the highest since February 2023, underlining the global demand for products from Dangote Refinery.

The Dangote Refinery, which commenced production in January 2024, has already exported its products to almost every continent.

While the surge in US imports was partly triggered by a maintenance-related shutdown at the Phillips 66 Bayway refinery in New Jersey, analysts believe the choice of Dangote’s products highlights its growing presence in international markets, having successfully competed with European refiners in gasoline exports.

Economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprises (CPPE), Dr Muda Yusuf, stated that the export of jet fuel to the United States by Dangote Refinery remains a point of pride for Nigeria, highlighting the quality, standard, and the trust that the international community places in the refinery.

“Nothing could be more prideful for us as a country than the fact that we now have a refinery producing products that can be exported to the United States. It speaks to the quality, standards, and trust that international communities have in Dangote Refinery, because these are markets that don’t compromise on quality. They have stringent standards, and if they deem it worthy to import from Nigeria, it is a source of great pride,” he said.

The former Director General of the Lagos Chamber of Commerce and Industry (LCCI) also emphasised that Dangote Refinery is enhancing Nigeria’s position on the global stage and should be supported by both citizens and the government.

“That is why all of us—citizens and the government—should do everything to support the refinery, as it is breaking many barriers and boosting our country’s reputation. The lesson here is that we should support the Dangote Refinery and other refineries with similar capacities, as they can provide us with significant leverage,” he added.

Also commenting on the business transaction, public policy expert, Dr Abimbola Oyarinu, stated that the Nigerian economy would be in a better state today if the country had functional refineries in the past, rather than just exporting crude oil while importing refined petroleum products.

“This is something that should have been addressed since 2014. Things wouldn’t have reached this point—such as high inflation and unemployment—if we had a functioning refinery. However, both the government and the people failed to take action until Dangote stepped in with significant investment.

“The Dangote Refinery is not only reducing foreign exchange outflow, but it is also bringing in foreign exchange. It is unfortunate that despite this, some elites and those in power are still intent on sabotaging the refinery and Dangote himself,” he said.

The university lecturer also warned that the lack of ease in doing business and the frustration of local investments could discourage future investors.

“This is something the country should be proud of. We previously had a mono-economy, reliant solely on oil exports, but Dangote has helped diversify the sector by selling finished products to international markets. However, which investors would want to invest in Nigeria after seeing what Dangote is going through?” he queried.

Meanwhile, the Manufacturers Association of Nigeria (MAN) has stated that the production of polypropylene by the refining  company will revive Nigeria’s struggling textile industry and save the country $267 million in import costs.

In a television interview, Director General of MAN, Segun Kadir-Ajayi, highlighted the struggles of the textile industry, which was once thriving and employed over 25,000 workers aged between 18 and 40 in the northern region alone.

He explained that many companies have been forced to shut down due to the absence of local polypropylene production and the scarcity of foreign exchange required for imports.

He further stated that the production of polypropylene by Dangote Refinery and Petrochemicals will ensure that Nigeria, which currently imports 90 per cent of its annual polypropylene requirements (amounting to 250,000 metric tonnes), will now become a net exporter, generating foreign exchange to strengthen the economy.

“For us in the manufacturing sector, this is a welcome development. It more than covers the 250,000 metric tons that constitute our national demand, which has been severely lacking. You can imagine the sectors it will impact—the textile industry, the plastic industry, the furniture industry.

“We are looking at an amount in the region of $267 million being saved. This is the amount spent every year in scarce dollars to import these materials. It is a welcome development for manufacturers, as it will incentivize investment in the sector,” he said.

Kadir-Ajayi, who lamented how the collapse of the textile industry led to widespread unemployment, stated that with the local production of polypropylene, manufacturers will no longer need to rely on imported polypropylene. This, he added, will help reduce their costs and improve efficiency.

“We have seen the global trend of the textile industry relying on the petrochemical industry. So, you can imagine what boost this is going to bring to the sector.

“And that it is now available locally and does not require that we continue to look for foreign exchange to be able to meet our demands. It is  cheering news for manufacturers,” he said.

He urged the federal government and other stakeholders to support the local production of polypropylene through incentives, stating that this would attract more investment into the sector and increase manufacturing’s contribution to the Gross Domestic Product (GDP).  He added that this would significantly aid the government’s goal of achieving a $1 trillion economy in the coming years.

Also yesterday, the Dangote oil refinery issued a tender to sell 128,000 metric tons of residual fuel oil in April, according to a summary of the tender document shared by a market source to Reuters.

The  refinery will close the tender on Wednesday (today) at 1200 GMT, as it seeks buyers for 88,000 tons of low sulphur straight run fuel oil and 40,000 tons of slurry oil for loading on April 10-12, the summary showed.

In addition, Dangote will shut its 204,000 barrel-per-day gasoline-making unit for 30 days for maintenance tentatively expected to start on June 1, according to industry monitor IIR, the Reuters report added.

Straight run fuel oil is a feedstock processed through secondary refining units and turned into products like gasoline (petrol) and diesel.

Dangote’s fuel oil exports averaged 75,000 bpd over the period from March to August 2024, but dropped to 20,000 bpd from September, according to shipping data analytics firm Kpler, when its gasoline-making residue fluidized catalytic cracking unit started production, the Reuters report stressed.

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