Nigeria’s Dangote refinery re-sells some US crude, official says

Nigeria’s giant Dangote refinery is re-selling some of the US crude it has purchased to feed the plant, according to a senior official at the refinery. 

The company is selling US supplies, though has the option to procure more local barrels should it need to, the official said, declining to be identified because the information isn’t public. The site’s sole crude unit is continuing to operate, the person added. 

Reuters first reported the news earlier Friday. 

The Dangote refinery, which will eventually have a total capacity of 650,000 barrels a day has been steadily ramping up its throughput this year, consuming both US and Nigerian barrels. When at maximum production, it has the potential to transform both local and international fuel markets. 

Dangote had been tendering for more US supplies for September delivery this month, but has now twice failed to award the tenders, according to traders familiar with the matter.