Nigeria Resumes Fuel Import From China
Amidst the poor performing status of Nigeria’s refineries, the country has resumed importation of petrol from China, the world’s top crude oil importer.
According to data from the General Administration of Customs as obtained by S&P Global Platts, the Asian country shipped 37,000 metric tonnes of petrol to Nigeria in September for the first time since July 2019
China, a major exporter of transportation fuels, has extended exports to Africa in recent years.
According to the United States Energy Information Administration, China’s annual crude oil imports increased by 0.9 million barrels per day (bpd) in 2019 to an average of 10.1 million bpd.
Last year, China’s refinery capacity increased by 1.0 million bpd, primarily because two new refining and petrochemical complexes came on stream with capacities for 0.4 million bpd each.
As a result, the country’s refinery processing also increased to an all-time high in 2019, averaging 13.0 million bpd for the year, according to the EIA.
Nigeria has continued to rely heavily on importation for many years to meet its fuel needs as the nation’s refineries remain in a state of disrepair.
Uneven demand recovery in Africa has led to a divergence in support for Asian transportation fuel markets as diesel and jet fuel requirements weaken while demand for petrol remains robust, industry sources said.
The African continent draws most of its petrol and middle distillate imports from the Persian Gulf and the Mediterranean, and an increase in demand typically lends indirect support to Asia, market sources said.
– The Sun