Payment Issues Stall Unloading of Chinese Oil Cargo at Dangote Refinery
Payment Issues Stall Unloading of Chinese Oil Cargo at Dangote Refinery
A cargo belonging to Chinese state energy major PetroChina, has been waiting to unload a cargo of US crude at Nigeria’s giant Dangote refinery for nearly a month due to payment issues, quoting four trading sources and its tracking of shipping data.
The impasse, it said, highlights difficulties the $20 billion plant funded by Africa’s richest man, Aliko Dangote, faces in its aim to be the biggest refinery on the continent and in Europe when it reaches full capacity this or next year.
Nigeria has had severe dollar illiquidity for a while as its foreign exchange earnings from crude oil dwindled due mainly to its inability to raise crude oil production.
Dangote aims to reverse the trend by which the oil-rich country exports its crude but almost totally relies on imports of fuel and other refined products.
The 2-million-barrel West Texas Intermediate (WTI) crude cargo shipped by PetroChina onboard supertanker Maran Mira has, however, been floating off Nigeria since March 28, shipping data on LSEG and Kpler showed.
The completion of the oil sale from PetroChina to Dangote has been delayed as the refinery has yet to issue a letter of credit to the Chinese trader, one source familiar with the matter told Reuters.
Payment Issues Stall Unloading of Chinese Oil Cargo at Dangote Refinery
A cargo belonging to Chinese state energy major PetroChina, has been waiting to unload a cargo of US crude at Nigeria’s giant Dangote refinery for nearly a month due to payment issues, quoting four trading sources and its tracking of shipping data.
The impasse, it said, highlights difficulties the $20 billion plant funded by Africa’s richest man, Aliko Dangote, faces in its aim to be the biggest refinery on the continent and in Europe when it reaches full capacity this or next year.
Nigeria has had severe dollar illiquidity for a while as its foreign exchange earnings from crude oil dwindled due mainly to its inability to raise crude oil production.
Dangote aims to reverse the trend by which the oil-rich country exports its crude but almost totally relies on imports of fuel and other refined products.
The 2-million-barrel West Texas Intermediate (WTI) crude cargo shipped by PetroChina onboard supertanker Maran Mira has, however, been floating off Nigeria since March 28, shipping data on LSEG and Kpler showed.
The completion of the oil sale from PetroChina to Dangote has been delayed as the refinery has yet to issue a letter of credit to the Chinese trader, one source familiar with the matter told Reuters.
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