Nigeria’s Dangote Oil Refinery Strikes Supply Deal with TotalEnergies

At the Africa CEO Forum in Kigali, Rwanda, a significant stride was taken in reshaping Africa’s energy sector as TotalEnergies (TTEF.PA) and Dangote Refinery announced their inaugural supply deal. This collaboration marks a pivotal moment in efforts to enhance Africa’s self-sufficiency in energy production and distribution.

Patrick Pouyanne, CEO of TotalEnergies, shared details of the agreement, noting that it followed productive discussions with Aliko Dangote, Africa’s wealthiest individual and a prominent industrialist. “We met this morning, and we made the first deal between both of us,” Pouyanne stated during a panel discussion, emphasising the mutual benefits of this partnership.

Also Read: Border Dispute Between Niger and Benin Disrupts Oil Exports

Dangote Refinery, poised to be the largest in Africa and Europe with a capacity of 650,000 barrels per day upon full operation, represents a significant development in the continent’s industrial capabilities. Dangote expressed that the refinery had commenced production in January and is on course to significantly curtail Nigeria’s dependency on imported refined products, despite the nation being the largest oil producer in Africa.

The refinery has already initiated the production of jet fuel and diesel and is set to begin gasoline production next month. Dangote highlighted the refinery’s potential impact, “Our capacity is too big for Nigeria alone; it will be able to supply West Africa, Central Africa, and also Southern Africa.” He further mentioned that the refinery plans to supply markets as far-reaching as Brazil.

Moreover, in May, Dangote Refinery sought bids for two million barrels of West Texas Intermediate (WTI) Midland crude monthly for a year starting in July, reflecting its operational ramp-up.

This partnership not only signifies a strategic pivot towards more localised energy solutions in Africa but also showcases the potential for African enterprises to lead on the global stage in sectors critical to the continent’s economic growth and sustainability.

This alliance between TotalEnergies and Dangote Refinery is a beacon of industrial progress and economic empowerment, setting a precedent for future engagements between African giants and global players in the energy sector.