The Organisation of Petroleum Exporting Countries (OPEC) has indicated that supplies from Nigeria’s Dangote Refinery, the largest single-train refinery in the world, will exert pressure on the performance of Europe’s oil industry, particularly affecting the Northwest Europe (NEW) Gasoil market.
In its June 2024 Oil Market Report, OPEC identified Dangote Refinery as one of the leading Diesel and Jet Fuel suppliers likely to disrupt Europe’s oil and gas sector. Experts anticipate that this development will have a positive impact on Nigeria’s economy.
Standard & Poor Global had previously forecast that Nigeria’s $20 billion Dangote refinery would significantly alter international crude flows once it reaches full capacity. The refinery has already begun to influence the market since it started operations in January.
According to OPEC, the potential for increased production from Dangote Refinery, along with robust supplies from the Middle East and new contributions from Mexico’s Olmeca refinery, is expected to put pressure on NEW gasoil performance in the medium term.
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Europe, being one of the largest consumers of refined petroleum products, has had to rely on imports from Asia and the US following the European Union’s ban on Russian diesel. This shift has opened up opportunities for new suppliers.
The 650,000 barrels per day capacity refinery, owned by Africa’s wealthiest individual, Aliko Dangote, is now targeting the broader European market after International Oil Companies ceased supplying crude oil to it.
Devakumar Edwin, the Vice President of Oil and Gas at Dangote Industries Limited, announced that the company recently exported its first jet fuel cargo to Europe as it rapidly scales up production. Reports suggest that the refinery has exported 90 percent of its 3.5 billion liters of jet fuel and diesel to Europe, citing a lack of support from the Nigerian government.
