Dangote Refinery Eases Pressure on European Petroleum Markets, Says OPEC
The Organisation of the Petroleum Exporting Countries (OPEC) has acknowledged the significant impact of Nigeria’s Dangote Petroleum Refinery on the global petroleum market. The refinery, with a capacity of 650,000 barrels per day, commenced operations in September 2024, exporting petroleum products such as diesel and fuel to the international market.
OPEC’s latest report highlights that the refinery’s operations have reduced Nigeria’s dependency on imported petroleum products, particularly from Europe. This shift has eased pressure on European gasoline markets, enabling adjustments in fuel flows and paving the way for new market destinations for surplus volumes.
According to OPEC, “The ongoing operational ramp-up efforts at Nigeria’s new Dangote Refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market. Continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up gasoline volumes in international markets, calling for new destinations and flow adjustments for the extra volumes.”
The report also provided a global perspective on refinery margins. In December, refinery margins fell in key regions such as the US Gulf Coast (USGC) and Singapore, due to increased product availability and weak export incentives. However, in Rotterdam, margins continued to rise, buoyed by heightened travel activity during the holiday season. Products like gasoline, gasoil, and fuel oil (1.0% sulfur) contributed to this growth.
Additionally, global refinery intake saw a monthly increase of 1.1 million barrels per day (mb/d), attributed to reduced offline capacities, consistent with historical trends for the period.
The Dangote Refinery, one of Africa’s largest oil refineries, is a game changer for Nigeria’s energy landscape. It not only strengthens the country’s capacity for self-sufficiency in fuel production but also enhances its contribution to stabilizing international petroleum markets. OPEC’s recognition underscores the refinery’s growing influence in reshaping global energy trade dynamics.
