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    Home > Blog > West Africa’s Fuel Supply Chain Boosted by Efficient AGO Operations

    West Africa’s Fuel Supply Chain Boosted by Efficient AGO Operations

    Goli InnocentBy Goli InnocentSeptember 29, 2024Updated:September 29, 2024 Downstream Sector No Comments3 Mins Read
    Petrol Import Drops by 54% as Supply Increases(Petroleumprice.ng)
    Petrol Import Drops by 54% as Supply Increases(Petroleumprice.ng)

    West Africa’s fuel logistics have received a significant boost, thanks to a well-coordinated network of tanker shipments, jetties, and key suppliers such as Dangote Refinery, positioning the region for sustained economic growth.

    The region’s growing industrial demands and commercial transport needs have made Automotive Gas Oil (AGO) a critical energy source, powering businesses across West Africa. AGO accounts for approximately 40% of Nigeria’s petroleum consumption.

    According to the latest shipping data from Blueseas Maritime Services, an intricate schedule of tankers transporting AGO ensures that supply meets the region’s surging demand. Vessels carrying substantial quantities of AGO, ranging from 5,000 MT to 50,000 MT, are efficiently moving through Nigeria’s major ports and private jetties.

    Dangote Refinery is at the forefront of these operations, serving as a central hub for AGO production and supply. With a refining capacity of 650,000 barrels per day, Dangote Refinery is poised to significantly reduce Nigeria’s reliance on imported fuel.

    Tankers such as Wakili, St Nenne, and Stellar are scheduled to load large quantities of AGO from Dangote, illustrating the refinery’s pivotal role in maintaining energy security across West Africa. Wakili is set to load a massive 50,000 MT of AGO, underscoring the refinery’s capacity to handle large-scale exports.

    St Nenne, carrying 8,000 MT of AGO alongside Jet A1, is awaiting clearance for discharge at Ibafon Jetty after loading from Dangote. Other vessels, such as Ashabi, are strategically using multiple terminals to complete their operations discharging part of their cargo at Menj Jetty after an initial offload at another location.

    Private jetties across Lagos, including Menj Jetty, Ibafon Jetty, and Deep Water Jetty, are playing key roles in handling AGO imports. The efficient discharge of AGO from ships like Kowie, carrying 5,000 MT, and Bedford, expected with 16,500 MT, highlights the operational readiness of these terminals.

    Industry experts emphasise the importance of efficient port operations and timely clearances in maintaining the smooth flow of AGO. “Any disruption in the supply chain can have far-reaching consequences for the regional economy,” said an industry expert.

    The vessel Kowie, which arrived on September 16, was awaiting clearance before beginning its discharge operations on September 23 and is scheduled to complete by September 25. This highlights the need for streamlined regulatory processes to support the growing demand for AGO.

    As regional demand for AGO increases, so does the scale of shipments. Vessels such as PS Singapore and Wakili are expected to transport over 40,000 MT of AGO each, a shift towards larger volume deliveries. These larger cargoes signal a growing appetite for diesel fuel, crucial for supporting West Africa’s expanding industrial and transportation sectors.

    Coordination at sea remains equally important, with vessels like Stellar and St. Nenne anchored before receiving their berthing assignments. This strategic planning ensures minimal delays and maximises terminal utilisation.

    While some challenges persist, such as vessels awaiting clearance to begin discharging, these delays are often mitigated through strategic anchorage. The industry continues to innovate in optimizing port use and distribution.

    For instance, the practice of staggered discharges across multiple jetties allows operators like Ashabi to maximise efficiency, delivering 20,000 MT of AGO in phases to different terminals.

    With Dangote Refinery emerging as a major supplier, and jetties in Lagos and beyond managing increased volumes, West Africa’s AGO supply chain is poised for continued growth. The efficient scheduling and discharge processes observed in the region’s key terminals demonstrate a robust logistical framework capable of meeting future energy needs.

    As demand for energy grows, West Africa’s efficient AGO operations could serve as a blueprint for other regions looking to streamline their fuel supply chains.

    Blueseas Maritime Services Dangote Refinery PS Singapore and Wakili
    Goli Innocent
    Goli Innocent

      Goli Innocent is an energy journalist and digital strategist focused on Nigeria's oil and gas value chain. He reports on pricing, logistics, and regulatory updates affecting consumers and industry players.

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