Dangote Refinery Exports Fuel Jet Into Europe – Report

Nigeria’s Dangote refinery has made a historic move by exporting its first jet fuel cargo to Europe.

This signals a significant milestone in the global energy market and showcasing the rapid operational expansion of the massive facility.

According to a Friday report from S&P Global Commodity Insights, BP is currently transporting 45,000 metric tons of jet fuel from Dangote refinery to Rotterdam aboard the Doric Breeze.

This export marks the refinery’s debut in the European market following a substantial 120,000 mt tender.

S&P Global Commodity Insights gives a complete view of global energy and commodities markets enabling our customers to make decisions with conviction and create long-term, sustainable value.

“BP cargo” refers to the shipment of jet fuel that British Petroleum (BP) has acquired and is currently transporting.

In a groundbreaking development that could reshape global energy dynamics, BP has taken the lead, transporting 45,000 metric tons of jet fuel to Rotterdam, signifying a pivotal moment for the new 650,000 b/d complex.

The shipment, loaded from Lekki on 27th of May, underscores the refinery’s rapid production scale-up and its compliance with European jet A1 standards, setting the stage for a potential shift in West African trade flows.

“Two sources confirmed that the Doric Breeze ship marked the inaugural BP cargo, loading 45,000 mt of supply from Lekki May 27, according to S&P Global Commodities at Sea data.

“Cepsa also secured part of the tender, with the Spanish refiner expected to deliver supply to the continent imminently, traders said.

“Neither of the companies were available for comments on purchases of jet fuel from the refinery, while a representative from Dangote previously confirmed to S&P Global Commodity Insights that the refinery has complied with European jet A1 standards since the product first started being shipped within Africa in April.

“The inaugural European shipment demonstrates the growing reach of products from the 650,000 b/d Dangote refinery as it has rapidly ramped up operations and aims to shake up established West African trade flows.

Dangote has exported six jet fuel/kerosene cargoes starting April 8, with all material delivered to Senegal, Togo or Ghana, according to CAS data. BP is also expected to continue supplying jet fuel to the West African market with product from the refinery,” sources said.

European traders cautioned that fresh jet fuel flows could exacerbate existing weakness as Nigerian supply makes its way into a highly saturated market.

According to Platts assessments from Commodity Insights, CIF Northwest European jet fuel cargoes fetched a premium of $52/mt to the front-month ICE LSGO contract 29th of May, down $3.25/mt on the day and $11.25/mt on the week.

With ample supply weighing on the European market, the arbitrage window from the Persian Gulf was firmly shut.

The spread between the CIF NWE June and July contracts moved into a contango of minus $1.50/mt May 29. The contango structure, reflecting prompt market weakness, was last assessed lower 25th of April, when Platts assessed the second-month contract at a $1.75/mt premium to the front-month equivalent, Commodity Insights data showed.


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