SEATTLE (Oil Monster): The United States is expected to provide about 12 million barrels of crude oil to Nigeria's Dangote Petroleum Refinery. The purpose of U.S. crude imports is to compensate for local supply shortages. It should be mentioned that the refinery facility won't be able to reach its full refining capacity of 650,000 barrels per day by June of this year with local suppliers. Currently, the $20 billion refinery can process 500,000 barrels per day.
The 12 million barrels of crude oil are anticipated to arrive in Nigeria by the end of next month, according to media sources.
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The Nigerian National Petroleum Company Limited (NNPC) is having difficulty supplying the Dangote refinery with 350,000 barrels per day, according to refinery officials. Since the refinery's present operational capacity is significantly greater than this, it must consider other possibilities in order to receive the feedstock. He pointed out that NNPC's supplies would not be enough to cover the refinery's daily needs.
Eight more tanks are reportedly being built at the Dangote facility to hold imported crude oil. The refinery's storage capacity will increase by almost 42% to 3.4 billion liters thanks to these storage tanks.
A term tender was issued by the refinery last year to buy 2 million barrels of WTI crude per month beginning in July 2024, for a total supply of 24 million barrels annually.