In a strategic shift, Dangote Refinery has secured its first-ever shipment of Algeria’s Saharan Blend crude, signaling a move towards diversifying its crude supply.
According to industry reports, the refinery acquired a 1 million-barrel cargo from trading giant Glencore, with delivery expected between March 15 and 20. While neither Dangote nor Glencore has publicly confirmed the deal, sources indicate that the purchase aligns with Dangote’s refining needs, as Saharan Blend’s chemical properties complement its operations.
Since the start of 2024, nearly 420,000 barrels per day (b/d) of crude have been delivered to the Lekki-based refinery, with Nigerian crude making up 87% of total supply. However, shifting global market conditions and competitive pricing have made alternative sources, such as Algerian crude, an attractive option.
A drop in European demand—driven by seasonal refinery maintenance and an oversupply of light crude—has led to weaker pricing for Saharan Blend. The crude has seen a $1 per barrel decline in February, currently trading at a slight discount to the North Sea Dated benchmark.
By tapping into Algeria’s crude supply, Dangote Refinery is making strategic moves to optimize its feedstock mix while capitalizing on favorable market conditions, further cementing its role as a key player in Africa’s refining landscape.
