Dangote Refinery’s Operation Crashes Petrol Importation From European Markets
- OPEC said Dangote Petroleum Refinery is having an effect on the European PMS market
- It stated that Nigeria's imports of petroleum products from Europe have declined since the Dangote refinery was built
- This happened years after the country's petroleum needs were entirely met through imports
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The Organization of the Petroleum Exporting Countries has said that the European PMS market is being impacted by the Dangote Petroleum Refinery and its initiatives to increase the production of petrol.
Source: Getty Images
Years after the nation had been entirely dependent on imports for its petroleum needs, the 650,000-capacity Dangote refinery, which started operations in January 2024, began generating PMS in September.
According to an OPEC report released on Wednesday, the establishment of the Dangote refinery has decreased Nigeria's importation of petroleum products from Europe. Since it began operations, the refinery has exported gasoline, diesel, and aviation fuel to nations both inside and outside of Africa.
“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline (petrol) 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.”
Import declines
In the last quarter of 2024, OPEC said “imports also declined, particularly oil product imports, improving the outlook for the external sector.”
Although gasoline stockpiles at the Amsterdam-Rotterdam-Antwerp storage hub remained high, the report said that the gasoline crack spread in Rotterdam against Brent grew modestly on good exports.
It further stated that the gasoline inventory gains are anticipated to continue into the upcoming month as the Atlantic Basin's gasoline balance lengthens due to demand-side pressures from the winter.
According to OPEC, the continuous recovery in gasoline refinery output levels is expected to intensify the already pessimistic market attitude.
According to data OPEC obtained from secondary sources, Nigeria's average daily crude production in December was 1.507 million barrels, as revealed in the Monthly Oil Market Report.
Based on the reports, it increased from 1.477 mbpd in November to 12,000 bpd.
However, the government-provided figure for December was 1.485 mbpd, and the Nigerian Upstream Petroleum Regulatory Commission's figure is in line with this.
Recall that Bloomberg's research showed that the Dangote refinery's capacity placed it above the top ten refineries in Europe.
650,000 barrels of petroleum products may be refined daily at the $20 billion Dangote plant.
According to the study, this surpasses the capacity of Shell's Pernis refinery in the Netherlands by more than 246,000 barrels per day.
It was added that the Pernis refinery, the largest in Europe, has an installed capacity of 404,000 barrels per day. The BP Rotterdam in the Netherlands can accommodate 380,000 people.
Bloomberg added that the GOI Energy ISAB refinery in Italy was constructed with a 360,000 barrel per day capacity.
Additionally, 338,000 bpd can be refined at TotalEnergies' Antwerp refinery in Belgium.
The article also mentioned the 327,000 bpd Orlen Plock refinery in Poland, the 310,000 bpd Shell Rheinland refinery in Germany, the 310,000 bpd Miro refinery in Germany, and the 307,000 bpd ExxonMobil Anterwep refinery in Belgium.
Dangote refinery expands crude storage with 8 new tanks
Legit.ng earlier reported that the Dangote Petroleum Refinery was constructing eight additional tanks to enhance its capacity for storing imported crude oil.
The expansion is projected to boost the refinery's storage capacity by 6.29 million barrels, equivalent to 1 billion litres.
According to Africa Report, the $20 billion, 650,000-barrels-per-day (bpd) facility is designed to stockpile imported crude oil, addressing challenges related to the reliability of local supplies
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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