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Nigeria’s Dangote refinery has achieved a significant milestone by exporting its first cargo of jet fuel to Europe. This development marks the refinery’s entry into the European market and underscores its rapid operational expansion.
According to S&P Global Commodity Insights, British Petroleum (BP) is transporting 45,000 metric tons of jet fuel from the Dangote refinery to Rotterdam on the vessel Doric Breeze. This shipment follows a substantial 120,000 metric ton tender.
The refinery, which has been ramping up its operations swiftly, loaded the shipment from Lekki on May 27. The cargo meets European jet A1 standards, demonstrating the refinery’s compliance and readiness to compete in the global energy market.
This shipment is part of a broader strategy by the refinery, which has already exported six cargoes of jet fuel/kerosene to African countries including Senegal, Togo, and Ghana since April. BP plans to continue supplying jet fuel from the refinery to the West African market.
Despite the European jet fuel market being highly saturated, the entry of Nigerian supply could introduce new dynamics and potentially shift established trade flows. European traders have expressed caution, noting that additional supply could exacerbate market weakness.
The Dangote refinery, which has ambitious plans for further expansion, aims to produce ultra-low sulfur diesel for export to Europe by the third quarter of 2024. It also projects to start gasoline production in June, with expectations to reach steady-state utilization by 2027.
Aliko Dangote, Chairman of the Dangote Group, announced plans to list the $20 billion refinery on the Nigerian Stock Exchange by December 2024.
The Dangote refinery’s entrance into the European market signifies a pivotal development in global energy trade, showcasing its potential to become a major player in the industry.
