The Organisation of the Petroleum Exporting Countries (OPEC) has noted that the increased production of petroleum products by the Dangote Petroleum Refinery has reduced the importation of refined products from Europe.
In its latest Monthly Oil Market Report, the cartel said the refining efforts of the Lagos-based 650,000-barrel-per-day refinery have changed the narrative.
Business Post reports that Dangote Refinery commenced European distribution this month, as it aims for 100 per cent production.
“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 which will call for new destinations and flow adjustments for the extra volumes going forward,” the report partly read.
OPEC added that European light distillates continue to lose ground on the back of increasingly lighter and sweeter refinery crude diets in Europe and sanctioned Russian crude imports, leading to stronger naphtha production.
“The resulting naphtha surplus coupled with the declining petrochemical cracking capacity in Europe has weighed on the regional naphtha market.”
The 650,000 barrels per day Dangote oil refinery built by Nigerian billionaire, Mr Aliko Dangote, in Lagos, had affirmed to compete with European refiners when operating at full capacity.
Although, when it started operations last year, it struggled to secure sufficient crude locally — as production remains below target and tied to contracts with other players by the Nigerian National Petroleum Company (NNPC) Limited.
“We have gone up to 550,000 barrels per day, that is 85 per cent capacity in crude distillation,” Mr Devakumar said in December.
The refinery was forced to source crude from international markets following a dispute with the Nigerian state oil firm, the NNPC, over a crude supply deal under which Dangote Group had agreed to sell a 20 per cent stake in the refinery to NNPC for $2.76 billion.
In December 2024, on the back of the crude-for-Naira scheme, the volume of black gold supplied to the Lagos-based facility went 40 per cent higher to 395,000 barrels per day than the 280,000 barrels per day delivered in November.