TotalEnergies Seals First Supply Deal With Dangote Refinery

Confidence UbaniMay 18, 20241 Mins read525

French energy major TotalEnergies has secured its first supply agreement with the Dangote Refinery in Nigeria, as announced by Chief Executive Patrick Pouyanne. This deal marks a milestone for both parties and is reportedly set to enhance Nigeria’s refinery capabilities and regional fuel supply.

The agreement was finalised during a meeting with Aliko Dangote, proprietor of the $20 billion refinery, which has been stalling production. While specific details of the deal remain undisclosed, Pouyanne expressed confidence in the collaboration.

We met this morning; we made the first deal between us. The two CEOs met with our head of trading, and we found a way to convince them to make a deal”, Pouyanne said at the Africa CEO Forum in Kigali, Rwanda.

The Dangote Refinery, with a capacity of 650,000 barrels per day (bpd), is the largest in Africa and Europe when fully operational. Aliko Dangote has been seeking crude supplies to meet the refinery’s needs. In May, the company issued a tender for two million barrels of West Texas Intermediate (WTI) Midland crude per month for a year starting in July, according to a tender document seen by Reuters.

We started producing jet fuel, we are producing diesel, and by next month, we’ll be producing gasoline. What that will do, it will be able to take most African crudes, Dangote said at the panel discussion.

The next phase of the refinery is scheduled to commence early next year.TotalEnergies, alongside Shell, Exxon, and Chevron, is one of the significant crude producers in Nigeria. The new partnership with the Dangote Refinery is expected to increase the local and regional supply of refined products significantly.

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