Dangote Refinery now supplying bulk of domestic jet fuel — Report

Dangote Refinery now supplying bulk of domestic jet fuel — Report

Oil marketers have said that the bulk of jet fuel consumed locally is now being supplied by the Dangote Refinery. According to a report by Energy Intelligence, jet fuel marketers say fuel from the 650,000 barrels per day Dangote refinery make up the bulk of jet fuel utilised locally, less than six months after it began production.

“We’re already buying from Dangote [now] it’s slightly cheaper or at least the same price as imports,” Asharami Synergy’s managing director, Foluso Sobanjo, told Energy Intelligence in an interview this week. The downstream subsidiary of Sahara Group is now Nigeria’s leading airline fuel supplier with a market share of over 20%.

Sobango reckoned that the Dangote jet currently goes for a $2-$3 per metric ton discount to imports. He pointed out that the 10,000-20,000 ton “coaster” volumes available regularly from the plant are also much more convenient.

“Prices have fallen as the plant has ramped up production — despite large volumes of Mideast and Asian jet fuel passing right by the Nigerian coast on the way to Europe. Sources say Dangote is now operating at more than 300,000 b/d and finally began selling gasoline last month.”