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Nigeria’s Dangote refinery to import crude oil from US

Published

4 months ago

January 30, 2024

The Dangote refinery in Nigeria is getting ready to import crude from the US in the upcoming months, indicating the rising competitiveness of US barrels on the international market.

According to reports from Bloomberg quoting traders with knowledge of the situation, Trafigura Group sold the Dangote refinery two million barrels of WTI Midland, which are expected to be delivered by the end of February. This is the refinery’s first purchase of non-Nigerian crude.

Over the past ten years, the US oil supply has grown exponentially, changing the worldwide market and exerting influence in areas like Asia. These transatlantic deliveries are especially significant for Nigeria, a country whose economy is largely dependent on petroleum exports.

Earlier last month, the new 650,000 barrel per day oil refinery started up with a first goal is to process 350,000 barrels per day, and it will progressively increase output to reach its maximum capacity.

The refinery mostly sources its oil from within Nigeria through a supply deal with the trading division of the state-owned NNPCL; but, it just got its first shipment of Agbami crude from Nigeria, thanks to a Shell trading unit. Nigeria’s Amenam, Bonny Light, and CJ Blend streams were among the latter delivery.

The Dangote Group revealed earlier this month that the newly opened mega-facility can process different African crudes in addition to supplies from far-off places like Saudi Arabia and the US. It can even handle indigenous feedstock.

Over the past few years, Nigeria has faced a lack of crude oil production due to an increase in incidences of crude oil theft, oil majors withdrawing from the country, and increased instability in the Niger Delta.

Nigeria’s recent failure to reach its 1.75 mbpd OPEC output quota for 2023 has forced the oil cartel to reduce its 2024 production allotment. Perhaps the Dangote refinery is looking elsewhere for regularity in its crude oil supplies because of Nigeria’s unpredictable levels of crude oil production.

Related Topics:DANGOTE REFINERY Featured US

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Uganda discusses power line to South Sudan with China’s Sinohydro

Published

15 mins ago

May 15, 2024

Ifeoluwa Dada

According to the president’s office, Uganda is in negotiations with Sinohydro Corporation Limited of China to build a $180 million power transmission line that would enable Uganda to export electricity to South Sudan, which is severely short on energy.

Ugandan President Yoweri Museveni received a group led by Vice President of Sinohydro Corporation Yang Yi Xin on Monday as part of the negotiations, according to a late-morning statement from Museveni’s office.

The project, according to the statement, will entail building a new substation and expanding two existing ones in addition to building a 138-kilometre high-voltage transmission line to provide power to South Sudan.

“We are very much willing to help develop this project with the required finance if needed,” Xin was quoted as telling the president.

The statement stated that Museveni endorsed Sinohydro’s proposal to carry out the project. Uganda and South Sudan inked a power sales deal in June of last year, enabling Uganda to sell electricity to South Sudan.

To enable Uganda to export electricity to South Sudan, the two nations inked a power sales deal in June of last year. The Chinese firm is completing a $1.5 billion, 600-megawatt hydropower project on the River Nile in Northern Uganda that is meant to be the source for electricity exports to South Sudan.

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Uganda considers nuclear energy to meet increased electricity demand

Published

2 hours ago

May 15, 2024

Ifeoluwa Dada

Uganda’s Ministry of Energy and Mineral Development announced on Tuesday that it was collaborating with the International Atomic Energy Agency (IAEA) to develop nuclear energy in the country as power demand rises.

Irene Batebe, permanent secretary of the ministry, stated that the government, with the assistance of the IAEA, is investigating and evaluating uranium deposits to ensure a sustainable supply of nuclear fuel for the projected nuclear power plants and research reactors.

“Uranium is the most widely used nuclear fuel material in nuclear power plants and research reactors and is required for Uganda’s nuclear power program.

“The planned nuclear power capacity will require about 4,000 tons of Uranium annually when fully operational. Thus, there is a need for sustainable sources of uranium,” she said at the opening of the nine-day meeting with the experts from the IAEA.

Batebe stated that the government is modifying the Atomic Energy Act of 2008 to tighten the legal framework for the exploration, mining, and processing of nuclear fuel reserves. She stated that even if completely exploited, the country’s electricity generation capacity from hydro, biomass, geothermal, and peat will fall short of Uganda Vision 2040 ambitions.

“To meet our development targets, nuclear energy among other sources must be integrated in the electricity generation mix,” she said.

The Cabinet approved the Energy Policy for Uganda, 2023 in April 2023, which envisions the long-term development of 52,481 MW of generation capacity to meet future demand, with nuclear power accounting for 24,000 MW.