TotalEnergies Secures Supply Agreement with Dangote for Nigerian Refinery.
French energy giant TotalEnergies has finalized its inaugural supply agreement with Nigeria’s Dangote Refinery, marking a significant milestone in the energy landscape. TotalEnergies CEO Patrick Pouyanne announced the deal on Friday following discussions with Aliko Dangote, Africa’s wealthiest individual, during the Africa CEO Forum in Kigali, Rwanda.
“We met this morning, we made the first deal between both of us,” Pouyanne stated during a panel session at the forum. He highlighted the collaborative effort between the two companies’ CEOs and their trading heads in reaching the agreement.
Dangote Refinery, boasting a refining capacity of 650,000 barrels per day (bpd), stands as the largest refinery in Africa and Europe upon reaching full operational capacity. Seeking to secure crude supplies, the refinery had previously issued a tender for two million barrels of West Texas Intermediate (WTI) Midland crude monthly for a year starting in July.
With an investment of $20 billion, Dangote Refinery commenced production in January, aiming to diminish Nigeria’s reliance on imported fuels despite the country’s status as Africa’s top oil producer.
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Aliko Dangote affirmed the refinery’s capability to supply not only Nigeria but also the entire African continent, with plans for potential exports to Brazil. “We started producing jet fuel, we are producing diesel, by next month, we’ll be producing gasoline. What that will do, it will be able to take most African crudes,” Dangote remarked during the panel discussion.
Expressing confidence in the refinery’s expansive capacity, Dangote stated, “Our capacity is too big for Nigeria. It will be able to supply West Africa, Central Africa and also Southern Africa.” He further disclosed that the next phase of the refinery’s expansion is slated to commence early next year, underscoring Dangote Refinery’s pivotal role in transforming the region’s energy landscape.
