Algeria has supplied one million barrels of crude oil to the Dangote Petroleum Refinery.
Sources told Augus Media that the refinery purchased the crude shipment from Glencore Trading Company in February.
The newspaper was also informed by the sources that the shipment would be delivered between March 15 and March 20.
The amount is yet unclear, in accordance to the source, and neither party directly acknowledged the agreement.
Additionally, as stated by Augus Media, none of the tankers that loaded in Algeria in February indicated that they were going to Africa, indicating that the cargo would load in March.
A merchant reportedly stated that the Saharan mix is reasonably priced when compared to Nigerian grades and that its quality is appropriate for the Dangote plant.
“Nearly 420,000 b/d of crude was delivered to Lekki for Dangote so far this year, with about 82pc of that made up of light sweet grades, Vortexa data show. Nigerian crude accounted for 87pc of all arrivals,” Augus Media said.
“The March-loading trade cycle for Saharan Blend was slow to kick off due to sluggish demand in Europe because of seasonal refinery maintenance and ample light crude supply.
“This may have encouraged buyers in Europe to hold off on purchases of Saharan Blend in anticipation of weaker price differentials, prompting sellers to look to alternative outlets.”
The report added that Saharan blend prices dropped by $1 per barrel in February when March-loading cargoes were trading and now stand at a 20¢/bl discount to the north.
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Up to 12 million barrels of crude oil were anticipated to arrive at the Dangote refinery from the United States in February.
As the 650,000 bpd plant received over 24 million barrels of Nigerian supplies in October and November of last year, the refinery was working to increase production.
Dangote Industries Limited (DIL) vice-president Edwin Devakumar stated on February 10 that the refinery might start running at full capacity in 30 days.
Additionally, Nigerians were reassured by DIL chairman Aliko Dangote that his refinery had more than N600 billion worth of premium motor spirit (PMS) in storage, which is enough to satisfy Nigeria’s demands.
