Dangote Refinery Will Disrupt European Oil Market with Increased Diesel, Jet Fuel Exports — OPEC

The Organisation of Petroleum Exporting Countries (OPEC) has said that Nigeria’s Dangote Refinery and Petrochemicals will disrupt Europe’s oil market, particularly in the diesel and jet fuel sectors.

According to OPEC’s June 2024 Oil Market Report, “upside potential for higher production levels from Nigeria’s Dangote refinery, coupled with strong flows from the Middle East and new supplies from the Mexican Olmeca refinery, will likely exert pressure on NWE (Northwest European) gasoil performance in the mid-term.”

The Dangote Refinery, the world’s largest single-train facility, was inaugurated in 2023. With a capacity of 650,000 barrels per day (bpd), the refinery aims to be a key supplier to Europe, especially after the European Union banned diesel imports from Russia.

According to the Vice President of Oil and Gas at Dangote Industries, Devakumar Edwin, the refinery has already exported 90 per cent of its 3.5 billion litres of jet fuel and diesel to Europe. A lack of support from the Nigerian government allegedly caused the high percentage of foreign exports. Last month, the President of Dangote Group, Aliko Dangote, accused the Nigerian government of sabotage and offered to sell his refinery to the country’s state-owned company, Nigerian National Petroleum Company (NNPC) Limited.

Dangote Refinery recently noted that its concern has always been the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) reluctance to enforce the domestic crude supply obligation to ensure it receives its total crude allocation from NNPC and the International Oil Companies (IOCs).

Nevertheless, Dangote announced last month for the umpteenth time that the refinery is set to begin producing petrol, Nigeria’s primary fuel, in August after resolving crude oil supply issues with assistance from the NNPC Limited and the Federal Government.

Dangote Refinery’s growing output is already affecting global crude markets, particularly in Europe, where the demand for light, sweet Nigerian crude is strong.

Read: Despite Recurring Grid Collapse, Nigeria’s Power Minister Declares Improvement Under President Tinubu

Ghana Opens First Gold Refinery To Boost Revenue

DR Congo Court Sentences 26 Rebel Leaders to Death, Including Former Election Chief

About The Author

Emmanuel Ejiofor

subscriber

See author's posts