Nigeria’s Dangote refinery has launched a tender to sell 128,000 metric tons (151.7 million liters) of residual fuel oil in April, seeking buyers for the product as it continues ramping up operations.
A summary of the tender document shared by a market source on Tuesday showed that the 650,000 barrel per day (bpd) refinery is offering 88,000 tons (104.4 million liters) of low sulfur straight run fuel oil and 40,000 tons (47.5 million liters) of slurry oil.
The products are scheduled for loading between April 10 and 12.
The tender will close on Wednesday, the document stated.
Dangote refinery has not yet responded to requests for comment.
Refinery’s output and planned maintenance
Meanwhile, the refinery, owned by Africa’s richest man, Aliko Dangote, has gradually increased its output since it began operations.
However, it plans to shut down its 204,000 bpd residual fluid catalytic cracking (RFCC) unit the gasoline producing section for maintenance.
According to industry monitor IIR, the shutdown is expected to last for 30 days, beginning tentatively on June 1.
Straight run fuel oil, one of the products listed in the tender, is a key feed-stock for secondary refining units, which process it into higher-value products such as gasoline and diesel.
Moreover, shipping data from analytics firm Kpler showed that Dangote’s fuel oil exports averaged 75,000 bpd between March and August 2024.
However, volumes dropped significantly to around 20,000 bpd in September when the refinery started producing gasoline from its RFCC unit.
A market analyst noted that the refinery’s latest fuel oil tender could indicate adjustments in its production strategy.
“As more units come online, product flows will shift depending on refining margins and local demand,” the analyst said.
The refinery, which aims to reduce Nigeria’s reliance on imported fuel, is Africa’s largest and has been seen as a game changer for the continent’s oil and gas sector.
