Dangote must face energy security home truths

Nigeria’s mega-refinery is traversing the world in search of crude for the majority of its needs and may well export large swathes of its products

Nigeria’s 650,000b/d Dangote refinery, like any other major refinery complex, must maximise margins by balancing its product mix, supply chain and crude sourcing, despite logistical and regulatory constraints. Nigeria is Africa’s top oil producer. However, much of its domestic output is already committed due to long-term agreements and forward selling. As a result, the refinery must rely on imports for more than half of its requirements. With the government-owned Nigerian National Petroleum Company (NNPC) controlling most supply in the country, Dangote must navigate a complex web of contracts and global markets to meet its massive feedstock demands. The decision about crude and condensate fe