ABUJA, Nigeria (VOICE OF NAIJA)- The Dangote Petroleum Refinery and Petrochemicals has begun direct delivery of aviation fuel to Ethiopian Airlines, responding to supply pressures linked to the US-Iran crisis.
The Managing Director of Dangote Refinery, David Bird, said the company is now supplying jet fuel, diesel, and petrol to international markets, marking an expansion of its operations beyond Nigeria.
He made this known while speaking at the NAEE conference in Lagos, where he addressed issues surrounding fuel supply, refining capacity, and export strategy.
According to Bird, the refinery is currently producing enough to satisfy local demand, with excess volumes exported to African and global markets.
Since the Middle East crisis began on 28 February, the facility has supplied fuels to 11 African countries.
“Alhaji Aliko Dangote is absolutely unequivocal that it is Africa first. And we’re proud to have done a direct delivery to Ethiopian Airlines. And we will continue to export our product in surplus to Nigeria’s requirements and to our neighbouring African countries. And we have done that to more than 11 African countries to date since the war began,” Bird said.
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He noted that the export drive is supported by surplus production capacity, adding that the refinery is operating at full capacity following maintenance earlier in the year.
Addressing jet fuel availability and rising prices, Bird said the refinery is helping to stabilise supply at a time when shortages are being experienced in several markets, stressing that the issue is global rather than Nigeria-specific.
He attributed the high cost of aviation fuel to increasing oil prices, which stood at $112 per barrel as of Wednesday morning.
“Right now, there is a scarcity of product. And what is worse than 100 or 120 dollar oil is no oil at all. That is being faced by both developed and developing import-dependent countries. Whether that’s Australia, wholly reliant on imports, or developing countries like Bangladesh, Sri Lanka, or the Philippines,” Bird stated.
He, however, maintained that Nigeria currently enjoys adequate supply, crediting domestic refining capacity.
“Right now, in Nigeria there remains fuel abundance. And that is a good thing. Obviously, our commodity is exposed to the global price variations. We can’t insulate ourselves from that, but at least we have the product. We have the fuel. We have the fertiliser. As a result of the Dangote investment. So that’s something that we should be incredibly proud of,” he stated.
The refinery executive added that products are sold to various counterparties on a free-on-board basis, with conscious efforts to prioritise African markets where possible.
“We sell on an FOB basis to a wide variety of counterparties, but we have, where we could, tried to direct and ensure that those surplus molecules are given to African countries as a product,” he explained.
A Reuters report indicated that the Dangote refinery is benefiting from record margins in jet fuel production, much of which is being exported, even as domestic airlines have warned they may halt operations due to rising fuel costs.
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The refinery, the largest in Africa, was established to transform Nigeria into a net exporter of refined products, reduce dependence on fuel imports, and cushion the economy against global energy shocks.
According to Reuters, the refinery’s efficiency has enabled it to take advantage of high margins from jet fuel production.
Dangote Group Vice President Devakumar Edwin said the refinery sources most of its crude from the United States, alongside supplies from other African producers and Brazil, though he did not provide specific figures.
He added that most of the 24 million litres of jet fuel produced daily is exported to Europe, while also meeting the needs of Nigerian airlines, which are estimated to consume about 2.1 million litres per day.
“As European buyers are willing to pay a premium ahead of the peak demand summer travel season, European imports from Nigeria have averaged 78,000 to 96,000 barrels per day in April so far,” Reuters quoted data from Kpler and LSEG, noting it as the highest on record.
While European refiners earn about $15 per barrel, analysts estimate Dangote’s margins at more than double that, driven by access to Nigerian crude and the refinery’s scale and efficiency.