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OPEC Says Dangote Refinery’s Diesel, Jet Fuel Supplies To Disrupt Europe’s Oil & Gas Industry 

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  • It is a big plus to Nigeria’s economy

 

The Organisation of Petroleum Exporting Countries, OPEC, has said supplies from Nigeria-based world’s largest single-train Dangote Refinery and Petrochemicals will put pressure on the performance of Europe’s oil industry, especially the Northwest Europe (NWE) Gasoil.

OPEC in its newly released monthly Oil Market Report for June 2024 listed Dangote Refinery among the top Diesel and jet Fuel suppliers that will disrupt Europe’s oil & gas Industry, a development experts forecasted will positively impact the Nigerian economy.

It would be recalled that Standard & Poor Global quoting trading and the ship tracking sources had earlier predicted that Nigeria’s $20 billion Dangote refinery would shake up international crude flows when it reaches full capacity, having already made an impact since coming online in January, trading sources and ship tracking data show.

The OPEC report revealed that “Upside potential for higher production levels from Nigeria’s Dangote refinery, coupled with strong flows from the Middle East and new supplies from the Mexican Olmeca refinery, will likely exert pressure on NWE gasoil performance in the mid-term.”

It stated further “Europe is one of the world’s largest purchasers of refined petroleum products and relied on imports from Asia and the US after the European Union banned the use of Russian diesel in the bloc.

However, the 650,000bpd capacity refinery which is owned by the Africa’s richest man, Aliko Dangote, is eyeing the wider European market after International Oil Companies stopped supplying its crude oil.

Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin announced the company had earlier exported its first jet fuel cargo to Europe as it rapidly scales production.

The refinery is said to have exported 90 percent of its 3.5 billion litres of jet fuel and diesel to Europe over alleged lack of support from the Nigerian government.

“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 percent of our production, have been exported,” Edwin said.

BP is currently transporting its first jet fuel cargo to Rotterdam from Dangote, after being awarded part of a 120,000 metric tonnes tender offered for the end of May, according to S&P Global.

OPEC stated that, “In June, the jet/kerosene crack spread in Rotterdam against Brent showed a slight decline, influenced by supply-side dynamics. Despite signs of improving air travel activities, subdued jet fuel demand from the aviation sector weighed on the product market.

“Going forward, European jet/kerosene demand is expected to see upward pressure as consumption levels from the aviation sector continue to pick up in the coming months.”

S&P had noted that Dangote Refinery in its first six months, scaled to 400,000 b/d and delivered diesel, jet fuel, naphtha, and fuel oil to both domestic and export markets, with Gasoline, Nigeria’s primary fuel type, being expected to be produced from mid-August.

Notwithstanding, the refinery has already affected crude flows, with dozens of Nigerian cargoes remaining in-country and US WTI Midland, a comparable light, sweet grade, being imported.

The mega-refinery could therefore tighten the light, sweet crude market. “Its diet is WTI and the lighter Nigerian [crudes] so if you were chasing those barrels you’d probably feel it quite keenly,” a West African crude trader told Commodity Insights. “Once they get to 650,000 b/d without any WTI Midland, ‘severely disrupted’ [will be] the headline.”

WTI Midland crude initially emerged as the favored feedstock to supplement Nigerian supply, with the refinery signing long-term supply contracts for the US grade and noting its competitive pricing. Platyts, part of Commodity Insights, last assessed WTI Midland into Rotterdam at $82.36/b on July 31, while Nigeria’s Bonny Light was assessed at $82.80/b on the same day.

Crude flows in and out of the Dangote refinery have been felt in other markets, especially in Europe, the largest consumer of light, sweet Nigerian crude. The US grade has accounted for 30% of crude delivered to Dangote, through 18 cargoes.

President of Dangote Group, Aliko Dangote said the facility would broaden its feedstock sources with Libyan, Angolan, and Brazilian crude.

“The refinery was built to use Nigerian crude and add value to it within Nigeria. Why should we deviate from that focus?” said Dangote, adding that the crude supply issues were “getting resolved”, but that the refinery remained open to all opportunities “to supplement it”.

“Dangote refinery is designed to process a range of light and medium grades of crude oil, including Nigerian grades,” said Rasool Barouni, Associate Director and head of Refining at S&P Global Commodity Insights. “Other similar grades including other WAF grades could be an option.”

Nigeria is sub-Saharan Africa’s largest oil producer, pumping 1.5 million b/d in June, according to the Platts OPEC Survey from S&P Global Commodity Insights. Until this year, all of its oil was exported due to the lack of refining capacity, with gasoline, diesel, and jet fuel imported for domestic use.

BIG STORY

Nigerian Firm Codix Bio To Begin Production Of Malaria, HIV Test Kits Amid USAID Fund Cutback

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Codix Bio Ltd, a Nigerian company, has announced plans to manufacture millions of HIV and malaria test kits at its new facility for use both locally and across the region.

As reported by Reuters on Thursday, the initiative aims to fill the gap created by funding reductions at the United States Agency for International Development (USAID), a US donor body.

Former US President Donald Trump had initiated a suspension of funding for HIV treatment in developing nations under an executive order concerning foreign aid.

These executive orders also disrupted the activities of USAID and other US-funded foreign aid programmes.

Speaking to Reuters, Olanrewaju Balaja, general manager of Codix Bio, said the plant located in Ogun state will begin distributing the test kits later this month.

He explained that the production will be done in partnership with SD Biosensor, a pharmaceutical firm based in South Korea, and supported by the World Health Organization (WHO).

According to him, the facility initially has the capacity to produce 147 million test kits annually, with potential expansion to over 160 million.

“From the statistics of what is supplied (by USAID and PEPFAR) for a specific programme year, and looking at what we have currently in capacity for Nigeria, we have enough capacity to meet the demand,” Balaja said.

He also indicated that the firm is prepared to expand its services to “West and Sub-Saharan Africa, including other African countries”.

“The focus was for us to be able to play in the field of supply of rapid diagnostic test kits for donor agencies, which particularly USAID was at the forefront,” Balaja added.

Balaja stated that both the Nigerian government and donor organisations such as the Global Fund are expected to source test kits from Codix Bio.

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BIG STORY

Benue Killings: We Are Starving, Dying, IDPs Cry Out

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Displaced persons from Yelwata community in Guma Local Government Area of Benue State, affected by coordinated attacks by suspected armed herders, protested on Thursday over poor living conditions in their camp.

The IDPs, currently staying at the International Market in Makurdi, the state capital, took to the streets and blocked major access routes leading to the temporary camp situated on George Akume Way, Makurdi, to express their frustration and the hardship they’ve faced since arriving at the facility.

They accused officials of the state government of diverting relief materials donated by well-meaning individuals and humanitarian groups, which they said has deepened their suffering.

One of the displaced persons, Fidelis Igban from Yelwata, described the conditions at the camp as unbearable due to starvation and a poor environment.

He stated, “Imagine, people would come to the camp and donate food items and other relief materials to us(IDPs), and once those items were handed over to the officials, it will end up not reaching us.”

He added, “Just few days ago, secretary to the government of the federation, Senator George Akume came to the camp and donated some items for onward distribution to IDPs. Up till now, we have not seen anything.”

He also said, “The Senior Pastor of Dunamis International Gospel Centre, Dr. Paul Enenche, came here and donated materials for our consumption, yet nothing gets to us. We are starving and dying here. We want to go back to our homes.”

He lamented the reality of being forced from their homes due to herdsmen attacks, only to face new hardships in the camp after losing loved ones.

“There’s no food, our children are starving, we sleep on the floor, and mosquitoes are almost killing us. We are suffering, and people are dying. officials overseeing camp management were hoarding and diverting donated materials,” he said.

Erdoo Targa, another IDP, said she was six months pregnant when she arrived and has struggled to access medical attention.

She said, “Government brought us here and abandoned us. No food, no medical care, hunger is telling us, we are starving and our children are getting sick day by day”.

She explained that the protest was to call the attention of the government and concerned individuals to their plight.

She urged the state government and relevant humanitarian bodies to investigate the alleged diversion of supplies and ensure fair distribution of aid.

Efforts to contact the Commissioner for Humanitarian and Disaster Management, Aondoaseer Kude, and the Executive Secretary of the State Emergency Management Agency, Dr James Iorpuu, were unsuccessful as they did not respond to calls or text messages.

The agency’s information officer, Tema Ager, said he was not authorised to speak on the protest.

He said, “Kindly get across to the Head of Administration of SEMA or the Commissioner for Humanitarian and Disaster Management. They are in better position to speak to journalists, thanks”.

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BIG STORY

Road To 2027: President Tinubu Has No Rival In Kaduna — Speaker Abbas

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Speaker of the House of Representatives, Tajudeen Abbas, has said that residents of Kaduna State do not see any other option besides President Bola Tinubu for the 2027 presidential race.

He explained that the president has significantly impacted the state “In very practical terms” by initiating “A wide range of federal infrastructure projects that directly impact” its citizens.

According to Abbas, because of these efforts, the people of Kaduna are ready to surpass the votes President Tinubu received in the state during the 2023 elections.

He made these remarks during President Tinubu’s visit to Kaduna on Thursday to commission several projects carried out under Governor Uba Sani’s administration.

Among the projects inaugurated were the Institute of Vocational Training and Skills Development in Rigachikun, Soba, and Samaru-Kataf; a 300-bed hospital in Kaduna Millennium City; the 24km Kafanchan Township Road; the Tudun Biri Road; the 22km Kauru-Pambegua Road connecting Kauru and Kubau LGAs; a Vocational and Skills Training Centre in Tudun Biri; and the deployment of 100 Compressed Natural Gas buses.

Abbas noted that Kaduna remains central to Nigeria’s socio-economic growth and said Tinubu’s visit “Reflects a leadership that engages directly, listens attentively, and responds with action.”

In a statement by his Special Adviser on Media and Publicity, Musa Krishi, Abbas was quoted as saying, “Kaduna has no reason to vote for anyone else in 2027. My belief is strengthened by your administration’s commitment to Kaduna in very practical terms. You have initiated a wide range of federal infrastructure projects that directly impact the state of Kaduna.

“Mr President, Kaduna has long been at the centre of Nigeria’s national conversation, politically, economically, and historically. In the 2023 presidential election, the APC received about 30 per cent of the valid votes cast in the State. While that outcome is significant, it leaves room for growth.

“Therefore, on behalf of our governor, our party, and our communities, I assure you that Kaduna is determined to do more. Our goal is to double that margin and secure at least 60 per cent of the vote in 2027. This is not merely a political ambition; it is a coordinated objective backed by a united political structure and a population that believes in your leadership.”

He also praised the president for initiating the Abuja-Kaduna-Zaria-Kano Federal Highway reconstruction, noting it “Was flagged off by Your Excellency in April and reinforced by substantial budgetary approval from the Federal Executive Council.”

He described the $2.8bn Ajaokuta-Kaduna-Kano gas pipeline project, which had reached 72% completion by Q1 2025, as another milestone.

He added, “We also acknowledge with deep gratitude your vow to complete the Ibadan-Abuja-Kaduna-Kano railway project, which will further reinforce Kaduna’s role as a transport hub.

“Other significant projects under your administration include the recent establishment of the Federal Medical Centre in Kafanchan and the Federal University of Applied Sciences in Kachia. For the people of Southern Kaduna, these developments are not merely about access to health and education; they are, more importantly, about federal presence, institutional recognition, and long-overdue inclusion.”

Abbas said Zaria has also benefited under the current administration, stating, “We have also seen measurable progress, made possible by your support and federal backing. Through consistent legislative engagement and collaboration with your administration, we have secured significant federal investment in institutions of higher learning.

“These include the upgrade of the Federal College of Education, Zaria, into the Federal University of Education. Support has also been strengthened for the Nigerian Institute of Transport Technology, the Nigerian College of Aviation Technology, and the Ahmadu Bello University, Zaria.

“Federal funding secured under your administration is helping to expand their infrastructure, modernise their facilities, and increase their capacity to serve Nigeria more effectively.

“Mr President, these are not abstract achievements. They are deliberate outcomes made possible through political will, budgetary support, and executive collaboration,” he added.

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