The Organisation of Petroleum Exporting Countries (OPEC) has revealed that the Dangote Refinery is having a significant impact on European markets, as Nigeria’s importation of petroleum products continues to decline.
According to OPEC’s latest report, Nigeria’s imports of oil products decreased in the last quarter of 2024, improving the outlook for the country’s external sector.
The Dangote Refinery, a $20 billion project spearheaded by billionaire Aliko Dangote, began petrol production in September last year, marking a major milestone in Nigeria’s energy sector.
With a capacity of 650,000 barrels per day (bpd), the refinery is now affecting European markets, particularly the gasoline market.
OPEC data shows that Nigeria’s average daily crude production hit 1.507 million barrels in December.
The report notes that the Dangote Refinery’s production capacity is 246,000 bpd more than Shell’s Pernis refinery in the Netherlands, and significantly higher than BP Rotterdam’s 380,000 bpd capacity.
The ongoing operational ramp-up efforts at the Dangote Refinery and its gasoline exports to the international market are expected to further impact the European gasoline market.
As Nigeria continues to produce gasoline, the country’s reliance on imports will decrease, freeing up gasoline volumes in international markets. This, in turn, will require adjustments to flow destinations and volumes.
