Africa's Largest Refinery Increases Purchases of Libyan Oil - LibyaReview
Libya is strengthening its position as a key crude oil supplier to Africa’s largest refinery, with Nigeria’s Dangote Refinery expected to receive another one-million-barrel shipment of Sharara crude this week. . .
Libya is strengthening its position as a key crude oil supplier to Africa’s largest refinery, with Nigeria’s Dangote Refinery expected to receive another one-million-barrel shipment of Sharara crude this week as it continues to diversify its supply sources. According to Nigerian media reports, the refinery has imported crude from Libya’s Sharara oilfield for the third consecutive month after receiving its first cargo in May. The latest shipment reflects the refinery’s growing reliance on Libyan crude as imports of US West Texas Intermediate (WTI) crude have ceased since March. The change in sourcing highlights the increasing competitiveness of Libyan crude in regional markets. Industry analysts say Sharara crude offers refining characteristics similar to WTI, allowing the refinery to maintain operational efficiency while reducing dependence on a single supplier. Data from energy intelligence firm Argus Media shows that Nigerian crude accounted for 71% of the refinery’s total feedstock in July, down from 85% in June. The figures indicate that the 650,000-barrel-per-day facility is increasing the share of imported crude in its refining mix, with Libyan oil emerging as one of its preferred international grades. The refinery is owned primarily by Nigerian businessman Aliko Dangote, Africa’s richest person, whose energy investments have transformed the continent’s refining industry. The growing demand for Libyan crude comes as the company continues to expand its operations and strengthen fuel production for domestic and export markets. In a separate development, Dangote Refinery is preparing for what could become the largest initial public offering (IPO) in African capital markets. Reuters reported that the company plans to raise about $5 billion through a public listing expected by October. The refinery has also benefited from increased demand for refined petroleum products following disruptions in global fuel markets, allowing it to expand exports of aviation fuel across Africa and parts of Western Europe. Dangote has announced plans to increase the refinery’s processing capacity from 650,000 barrels per day to 1. 4 million barrels per day and build a similar facility in Kenya as part of a broader strategy to improve Africa’s fuel self-sufficiency and reduce dependence on imported petroleum products. For Libya, the refinery’s growing purchases represent another important export outlet for its high-quality light crude, reinforcing the country’s role as a competitive supplier to major energy markets while supporting demand for production from the Sharara oilfield, one of the country’s largest producing assets.