US Buys 2 Million Barrels Of Jet Fuel From Dangote
In historic business deals, the Dangote Petroleum Refinery yesterday announced that the United States imported over 2 million barrels of jet fuel from the 650,000 bpd facility this March alone, underscoring the growing global impact of the world’s largest single-train refinery, located in Lagos.
The entrance of the Dangote refinery into the US market is expected to see jet fuel hit a two-year high in the country this month, as well as lower the prices of the aviation fuel in the peak summer travel season, according to trade analysts.
Data from ship-tracking service, Kpler, referenced by a statement from the Dangote refinery, showed that six vessels carrying around 1.7 million barrels of jet fuel from the refinery arrived at US ports this month, while another vessel, the Hafnia Andromeda, is set to arrive at the Everglades terminal on March 29, with approximately 348,000 barrels of jet fuel.
This shipment to the US followed the export of three cargoes of jet fuel, totalling around 130 million litres, from Nigeria to Saudi Arabia by the Dangote refinery, which has already demonstrated its ability to compete with European refiners on petrol exports.
It is believed that the jet fuel shipments to the US could also challenge the economics of domestic producers in the world’s largest fuel-consuming nation.
Chief Operating Officer of TankTiger, a midstream logistics and independent brokerage and consulting clearing house, Steven Barsamian, confirmed that the deals would likely lower jet fuel prices in the US ahead of the peak summer travel season.
‘’The surge in demand, partly driven by the influx of supply from Nigeria, is expected to lower jet fuel prices in the US ahead of the peak summer travel season,” he said.
Demand to lease storage tanks for jet fuel in Houston and New York Harbor in April is averaging around 700,000 barrels, five to six times the average monthly demand, it was learnt. US jet fuel imports in March have averaged around 226,000 bpd, the highest since February 2023, underlining the global demand for products from Dangote Refinery.
The Dangote Refinery, which commenced production in January 2024, has already exported its products to almost every continent.
