Dangote Refinery’s Impact Reverberates Across European Fuel Markets – OPEC

The Organisation of the Petroleum Exporting Countries (OPEC) has underscored the transformative impact of the Dangote Petroleum Refinery on the European fuel market, driven by its significant contribution to Premium Motor Spirit (PMS) production.....KINDLY READ THE FULL STORY HERE▶

The 650,000 barrels-per-day refinery, which began operations in January 2024 and commenced PMS production in September, represents a major shift for Nigeria, historically reliant on fuel imports. Since its launch, the facility has exported petrol, diesel, and aviation fuel across Africa and beyond.

An OPEC report released on Wednesday highlighted that the refinery has reduced Nigeria’s dependence on imported petroleum products from Europe.

“The operational ramp-up of Nigeria’s new Dangote refinery and its gasoline exports to the global market are poised to exert further pressure on the European gasoline market,” the report stated.

The report also noted that increased gasoline production in Nigeria will likely free up volumes in international markets, necessitating adjustments in supply flows and destinations.

In the last quarter of 2024, Nigeria’s reduced petroleum imports improved its external sector outlook. Additionally, Rotterdam’s gasoline crack spread against Brent crude experienced a marginal rise due to strong exports.

Despite this, inventories in the Amsterdam-Rotterdam-Antwerp storage hub remain high, with further stock builds expected as winter demand softens. OPEC warned that recovering global gasoline refinery outputs could deepen bearish market conditions.

Nigeria’s Crude Oil Production Increases

OPEC’s Monthly Oil Market Report revealed that Nigeria’s average daily crude oil production rose to 1.507 million barrels per day (bpd) in December, a 12,000 bpd increase from November’s 1.477 million bpd. Government data, corroborated by the Nigerian Upstream Petroleum Regulatory Commission, placed December’s production at 1.485 million bpd.

Dangote Refinery’s Global Significance

Bloomberg ranks the $20 billion Dangote Refinery above the 10 largest refineries in Europe, with its 650,000 bpd capacity surpassing Shell’s Pernis refinery in the Netherlands (404,000 bpd). Other prominent European refineries include BP Rotterdam (380,000 bpd), TotalEnergies Antwerp in Belgium (338,000 bpd), and ExxonMobil Antwerp in Belgium (307,000 bpd).