French oil and gas company TotalEnergies has secured its first supply agreement with Dangote Refinery in Nigeria, reported Reuters.
The announcement came from TotalEnergies CEO Patrick Pouyanne after discussions with billionaire and industrialist Aliko Dangote. Pouyanne expressed confidence in the strategic partnership, highlighting that this agreement marks a significant milestone for both companies in their efforts to bolster energy security and market presence in the region.
Dangote has been actively seeking crude supplies for his refinery, which is expected to process 650,000 barrels per day (bpd), making it the largest in Africa and Europe at full capacity. The refinery’s capacity is anticipated to significantly reduce Nigeria’s dependence on imported refined products, enhance local production capabilities, and potentially transform the country into a net exporter of petroleum products.
In May, Dangote Refinery issued a tender for two million barrels of West Texas Intermediate (WTI) Midland crude monthly for a year starting in July, according to a tender document obtained by the publication. This strategic move underscores the refinery’s ambition to source high-quality crude oil to ensure optimal refinery output and product quality, which is crucial for meeting both domestic and international market demands.
The refinery, which began production in January, represents a $20 billion investment. This monumental project not only highlights Aliko Dangote’s commitment to Nigeria’s industrial growth but also showcases the potential economic benefits, including job creation, technology transfer, and increased GDP contributions. The refinery’s operations are expected to catalyze ancillary industries, further driving economic diversification in Nigeria.
Additionally, the collaboration between TotalEnergies and Dangote Refinery is seen as a positive development in strengthening energy ties and fostering economic cooperation between Nigeria and France. The partnership is expected to pave the way for future investments and collaborations in the energy sector, benefiting both nations.
