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Home Business & Finance Business

Dangote Refinery imports first UAE crude shipments

Victory Emmanuel by Victory Emmanuel
June 29, 2026
in Business
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Dangote

Industrial oil storage tank with capacity of 120 million litres and pipeline infrastructure.

The Dangote Refinery has purchased two cargoes of crude oil from the United Arab Emirates in its first Dangote Middle East crude procurement, expanding feedstock sources amid domestic supply challenges

The Dangote Petroleum Refinery has purchased two cargoes of crude oil from the United Arab Emirates, marking its first-ever procurement of Middle Eastern crude as it expands its feedstock sources amid persistent domestic supply constraints.

According to a report by S&P Global Commodity Insights, the two cargoes will be the first sourced by the 700,000-barrels-per-day refinery from any Middle Eastern supplier, signalling a shift from its traditional reliance on Nigerian, African and United States crude grades.

The purchases followed the resumption of oil exports from the Middle East after the United States and Iran reached an interim peace agreement that restored confidence in shipping through the Strait of Hormuz.

The refinery, designed primarily to process Nigeria’s light sweet crude, has increasingly diversified its crude slate as operations ramp up.

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An agreement between the refinery and the Nigerian National Petroleum Company had guaranteed the supply of between 13 and 15 cargoes of Nigerian crude monthly in naira, helping the refinery reduce its foreign exchange exposure.

However, the arrangement has faced challenges due to inadequate crude availability and operational issues at export terminals.

Dangote Refinery Chief Executive Officer David Bird had previously disclosed that these constraints had compelled the company to seek additional crude sources outside Nigeria.

The refinery’s expansion plans would further increase its crude requirements.

Dangote plans to double the refinery’s processing capacity to 1.4 million barrels per day by the end of 2028, a level that would enable it to process about 80 per cent of Nigeria’s recent crude oil production in a single day.

Bird said the refinery intended to increase the share of heavier crude grades in its feedstock mix. “We definitely want to heavy up the barrel,” Bird said in April.

“We will be in the crude blending game. So you can easily imagine at 1.4 million b/d we could process 30 per cent Middle Eastern grades on each train.”

According to S&P Global, the refinery has been broadening the range of crude grades it processes as part of its ambition to operate as a fully merchant refinery.

In 2025, about 70 per cent of the refinery’s crude imports came from Nigeria, while 24 per cent originated from the United States.

This Dangote Middle East crude procurement reflects the refinery’s strategy to ensure stable operations while supporting Nigeria’s goal of reducing reliance on imported refined petroleum products.

Victory Emmanuel
Victory Emmanuel

Victory Emmanuel is a journalist and contributor to Freelanews.com, covering news, business, and public affairs.

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