The Organisation of Petroleum Exporting Countries (OPEC) has revealed that the Dangote Refinery is having a significant effect on European markets, noting a substantial drop in the importation of petroleum products into Nigeria.
In a report released mid-last week, OPEC highlighted that petroleum product imports, especially in the last quarter of 2024, had decreased notably, thereby improving the outlook for Nigeria’s external sector.
The Dangote Refinery, a $20 billion project spearheaded by billionaire Aliko Dangote, marked a milestone in Nigeria’s energy industry when it officially began petrol production in September 2024. On the achievement, Dangote said: “This refinery will fuel growth, development, and prosperity by supplying energy to our people.”
OPEC’s report also mentioned that Nigeria’s average daily crude production reached 1.507 million barrels in December 2024. Notably, the Dangote Refinery, with a capacity of 650,000 barrels per day (bpd), surpasses the capacity of Shell’s Pernis refinery in the Netherlands by 246,000 bpd, and BP’s Rotterdam refinery, which has a capacity of 380,000 bpd.
OPEC further explained that the ongoing operational ramp-up at the Dangote refinery, coupled with its gasoline exports, is likely to exert additional pressure on the European gasoline market. Nigeria, which has historically relied heavily on fuel imports, is now producing its own gasoline, which will likely free up volumes in international markets. This shift will require adjustments in the flow and destination of these extra volumes, OPEC noted.
