U.S. jet fuel imports are set to reach their highest level in two years this March, with shipments from Nigeria’s Dangote refinery playing a significant role in this surge. The refinery, boasting a capacity of 650,000 barrels per day, has emerged as a key player in global fuel markets, reshaping trade flows in the Atlantic Basin.
In March alone, six vessels carrying approximately 1.7 million barrels of jet fuel from Dangote have arrived at U.S. ports, with another vessel, the Hafnia Andromeda, expected to deliver an additional 348,000 barrels to the Everglades terminal. This influx has pushed total U.S. jet fuel imports to around 226,000 barrels per day, the highest level since February 2023.
The impact of this surge in imports on U.S. aviation fuel prices is significant. While the Dangote refinery is not expected to be a regular supplier to the U.S., a temporary shutdown of the Phillips 66 Bayway refinery in New Jersey created an arbitrage opportunity for Nigerian jet fuel. However, this window is likely to close soon due to rising U.S. jet fuel inventories.
The increased imports have also driven a spike in demand for jet fuel storage in Houston and New York Harbor. U.S. jet fuel stocks ended February at 45.2 million barrels, the highest level for the month since 1999, according to the U.S. Energy Information Administration (EIA). Refiners’ jet fuel yields hit a record high last year, reflecting strong demand relative to other transportation fuels, with the EIA forecasting U.S. jet fuel consumption to reach an all-time high by 2026.
Despite its significant production capacity, Africa’s largest refinery is still sourcing crude oil from international suppliers to supplement domestic deliveries as it ramps up operations. The United States has been a major source of crude oil for the refinery, with over three million barrels of U.S. crude received since the beginning of the month, according to Bloomberg.
Overall, the surge in jet fuel imports from the Dangote refinery is reshaping the global fuel market landscape and may have a temporary impact on U.S. aviation fuel prices as the industry navigates changing trade flows and supply dynamics.
