The Dangote Petroleum Refinery has secured its first shipment of one million barrels of Algeria’s high-quality, light sweet Saharan Blend crude oil, marking a significant move to diversify its crude oil supply. This comes as Nigerian refineries continue to face local crude shortages despite increased production levels.
According to a report by Argus, the shipment is expected to arrive between March 15 and 20 and will be the first time the refinery processes Algerian crude. Saharan Blend, known for its low sulphur content and high refining yields, is traditionally exported to Europe. The refinery purchased the shipment from trading firm Glencore, though pricing details were not disclosed.
This development occurs as Indian refineries shift towards Nigerian crude due to a decline in Russian oil imports. Bloomberg reports that India’s crude imports from Russia fell by 14.9 percent in February, hitting their lowest level since January 2023. The decline follows fresh US and UK sanctions on Russian energy firms and oil tankers, disrupting shipments.
To compensate, Indian refiners have turned to Nigeria, Angola, Mexico, and Colombia. While Iraqi and Saudi crude supplies to India also increased, Nigerian exports have gained traction as a key alternative.
Despite Nigeria ramping up crude production to 1.5 million barrels per day in January—meeting its OPEC quota for the first time in three years—local refineries, including Dangote’s, still struggle with supply constraints. This has led Dangote Refinery to explore alternative sources, including Algeria, the United States, and Brazil.
Aliko Dangote, the refinery’s founder, previously emphasized the need to look beyond domestic suppliers, stating, “We will start importing crude oil from African countries. When we get to those countries, we’ll start negotiating with them and bringing in supplies from there.” However, he noted that if Nigeria’s crude were readily available, there would be no need to seek external sources.
Africa’s largest refinery, located in Lagos, began processing crude into diesel, naphtha, and jet fuel in January last year. With its full refining capacity set at 650,000 barrels per day, the refinery continues to expand its sourcing strategy to ensure steady operations.
