A few weeks ago, iBrand had written about the next move of Dangote Refinery – exporting its petrol to other countries. Now, off the coast of Lomé, the CL Jane Austen anchors with 300,000 barrels of gasoline from Nigeria’s Dangote Refinery.
Initially focused on domestic needs, the refinery’s first export signals a shift, marking its entry into West Africa’s energy market.
The CL Jane Austen quietly set sail from Nigeria’s Dangote Refinery, its tanks laden with over 300,000 barrels of petrol.
By the time it reached the calm waters off Lomé, Togo, the tanker had not only covered distance but had also marked a turning point in West Africa’s energy story.
This first shipment of petrol from Africa’s largest refinery, therefore, signalled a bold new chapter, one that could reshape the region’s fuel markets.
Dangote Refinery Makes Landmark Entry Into Regional Fuel Markets
Now anchored off Lomé, a well-known hub for ship-to-ship transfers, the vessel’s final destination remains unclear.
Nevertheless, its journey has added an air of intrigue to the historic export.
Yet, the significance of this development cannot be understated.
While modest compared to the scale of global fuel trade, it, nonetheless, represents a critical step in ramping up operations at the 650,000-barrel-per-day refinery.
Initially, people heralded the Dangote Refinery as a game changer for Nigeria, a project aimed at breaking the country’s long-standing dependence on fuel imports.
Designed to meet the nation’s demand of roughly 340,000 barrels per day, the refinery originally expected its petrol to flow exclusively into domestic markets.
Challenges And Shifting Strategies For Dangote Refinery
However, since it commenced production in September and upgraded its fuel quality in October, the refinery has faced unexpected challenges.
For instance, soaring petrol prices up fivefold from the previous year—have strained affordability for Nigerians.
Read Also; Why Dangote Now Needs Loan To Boost Refinery Operations
Moreover, regulators warned in August that local demand could fall by as much as 25% year-on-year.
Meanwhile, refinery CEO, Aliko Dangote, revealed that over 500 million litres of fuel were sitting in storage, unsold, costing the company dearly.
Consequently, Dangote attributed the sluggish sales to cheaper, low-quality imports that have undercut local prices.
In response, he even threatened legal action against the state-owned Nigerian National Petroleum Corporation (NNPC) for continuing fuel imports.
In a bid to clear stock, the refinery tested the waters of international markets earlier this month.
For example, it issued a public tender to sell 40,000 metric tonnes of petrol.
Though it later withdrew the offer under public pressure, the move foreshadowed what was to come.
Also Read: Why Dangote May Export His Petrol And Not Sell To Nigerians
Now, with its first shipment reaching international waters, the refinery is signalling a willingness and perhaps a necessity to expand its horizons beyond Nigeria’s borders.
As the CL Jane Austen floats off Togo’s coast, speculation swirls about the eventual destination of its cargo.
Whether bound for neighbouring countries or destined for a transfer at Lomé’s hub, one thing is certain: the Dangote Refinery is stepping into a broader arena.
Ultimately, its actions will be closely watched by markets across the continent.
