Untangling Dangote’s supply
The Nigerian mega-refinery has yet to reach its full product-producing potential
Nigeria’s mammoth Dangote refinery continues to face problems sourcing local supplies of crude, despite some recent agreements with former NOC Nigerian National Petroleum Company (NNPC) and the government. On 12 November, NNPC announced that its subsidiary, NNPC Gas Marketing, had signed a gas SPA with the Dangote refinery for 100mcf/d for an initial ten-year span. Half of the volume is firm supply and the other is interruptible. The gas will be used “for power generation and feedstock”, NNPC said. The huge refinery includes a petrochemical complex with the capacity to produce 3mt/yr of urea fertiliser—a gas-intensive process—while natural gas is also a feedstock in oil refining processes. “
Also in this section
24 January 2025
Domestic companies in Nigeria and other African jurisdictions are buying assets from existing majors they view as more likely to deliver production upside under their stewardship
23 January 2025
The end of transit, though widely anticipated, leaves Europe paying a third more for gas than a year ago and greatly exposed to supply shocks
23 January 2025
The country’s government and E&P companies are leaving no stone unturned in their quest to increase domestic crude output as BP–ONGC tie-up leads the way
22 January 2025
The return of Donald Trump gives further evidence of ‘big oil’ as an investable asset, with the only question being whether anyone is really surprised