Thursday, September 19, 2024

Dangote refinery marks milestone with first Jet fuel shipment to Europe

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BP is in the process of transporting its first jet fuel cargo from Dangote to Rotterdam, having secured a portion of a 120,000 metric ton tender offered for the end of May.

Two sources have confirmed that the Doric Breeze ship carried the first BP cargo, loading 45,000 metric tons of supply from Lekki on May 27, S&P Global Commodities reported.

Also, traders have reported that Cepsa also secured a portion of the tender, with the Spanish refiner expected to deliver supply to the continent soon.

A representative from Dangote previously confirmed to S&P Global Commodity Insights that the refinery has complied with European jet A1 standards since the product first started being shipped within Africa in April.

The maiden European shipment demonstrates the expanding presence of products from the 650,000 b/d Dangote refinery, which has swiftly expanded its operations and seeks to disrupt established trade patterns in West Africa.

Since April 8, Dangote has exported six jet fuel/kerosene cargoes, all of which have been delivered to Senegal, Togo, or Ghana, according to CAS data. Additionally, sources indicate that BP will likely continue supplying jet fuel to the West African market using products from the refinery.

European traders warned that the introduction of new jet fuel supplies could worsen the prevailing weakness as Nigerian exports enter an already saturated market.

To date, Dangote has exported naphtha, fuel oil and gasoil to markets in Europe, Africa and Asia, though naphtha exports could soon be curtailed to prepare for gasoline production, a representative for Dangote told Commodity Insights May 20.

Dangote has been seen pushing around four cargoes of naphtha each month to Europe since April, even though volumes could soon be curbed to boost domestic supplies for gasoline blending, once the plant’s fluid catalytic cracker is operational.

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