Another European Refinery Halts Operations as Dangote Disrupts Markets in Europe
- The Gunvor Group has announced that its Rotterdam refinery is halting operations due to a shortage of supply in feedstock
- The company disclosed in a statement that the Refinery’s halt in operations begins November 25, 2024
- The 75,000 barrels capacity per day plant is small compared to newer facilities springing up globally
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade
The Gunvor Group announced it is temporarily stopping its Rotterdam refinery because it is not making enough money. This is the latest sign that Europe’s plants are struggling to compete with new facilities in other parts of the world.
The list of refineries shutting down
Source: Getty Images
The company disclosed in a statement that the Refinery’s halt in operations will begin on November 25, 2024, due to the lack of prompt availability of viable feedstock.
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A Bloomberg report said the Group disclosed that it will continue to monitor the situation and assess future resupply for the Refinery in due course.
The 75,000 barrels capacity per day plant is small compared to newer facilities springing up globally.
Yet, the plant joins a growing list of European refineries with plants to either halt operations or downsize.
The list includes the Wesseling and Gelsenkirchen plants in Germany and the Grangemouth facility in Scotland.
Dangote’s Refinery disrupts Europe’s market
Europe’s refineries face intense competition from the Dangote refinery. Rival fuel makers also send products to Europe, thus competing for market share elsewhere globally.
The $20 billion Dangote Refinery in Lagos has been touted as a significant game-changer for petrol import and sales in Nigeria.
It reportedly began exporting petrol to other Western African markets and is Africa’s most significant and the world’s biggest single-train Refinery.
Dangote Refinery’s capacity
According to reports, the pipeline infrastructure of the Dangote Refinery is the largest anywhere in the world, with 1,100 kilometres to handle three billion standard cubic feet of gas daily.
It has a 435MW power plant and can meet the total power needs of Ibadan DisCo.
The plant is expected to meet 100% of Nigeria’s petrol supply needs and have a surplus for export.
It can process Nigerian and other crude grades from around the world.
Dangote, Mexico’s refineries to overtake US, EU producers
Legit.ng earlier reported that the Organisation of Petroleum Exporting Countries (OPEC) has revealed that the take-off of Dangote’s refinery in Nigeria and Dos Bocas refinery in Mexico would impact US and European plants.
Until now, the two countries and other African countries were the major destinations for petrol produced in the US and Europe.
Findings show that the Dos Bocas plant is a 340,000 bpd-capacity refinery, thus making Mexico self-sufficient in refined petroleum products.
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Source: Legit.ng
