The Organisation of the Petroleum Exporting Countries (OPEC) has highlighted how the Dangote Petroleum Refinery’s efforts to boost Premium Motor Spirit (PMS) production are reshaping the European fuel market.
The refinery, with a capacity of 650,000 barrels per day, began operations in January last year and started PMS production in September.
This marked a significant shift for Nigeria, which previously relied entirely on fuel imports. The facility has since exported petrol, diesel, and aviation fuel to various countries, both within and beyond Africa.
An OPEC report on Wednesday noted that the Dangote Refinery has reduced Nigeria’s dependency on imported petroleum products from Europe.
“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,” the report stated.
OPEC observed that in the last quarter of 2024, Nigeria’s petroleum product imports declined, enhancing the country’s external sector outlook.
Additionally, the gasoline crack spread in Rotterdam against Brent crude saw a slight increase, driven by robust exports.
However, inventories at the Amsterdam-Rotterdam-Antwerp storage hub remained high, with further stock builds anticipated due to reduced winter demand.
The report cautioned that the ongoing recovery in global gasoline refinery outputs could worsen bearish market trends.
Nigeria’s Crude Oil Production Gains
OPEC’s Monthly Oil Market Report revealed that Nigeria’s average daily crude oil production reached 1.507 million barrels per day (bpd) in December, reflecting a 12,000 bpd increase from November’s 1.477 million bpd.
The government’s figures for December, aligned with those from the Nigerian Upstream Petroleum Regulatory Commission, stood at 1.485 million bpd.
Dangote Refinery’s Global Ranking
According to Bloomberg, the $20 billion Dangote Refinery ranks above the 10 largest refineries in Europe due to its capacity.
Its ability to process 650,000 barrels per day surpasses Shell’s Pernis refinery in the Netherlands, which has an installed capacity of 404,000 bpd.
Other notable European refineries mentioned include BP Rotterdam in the Netherlands (380,000 bpd), TotalEnergies Antwerp in Belgium (338,000 bpd), and the ExxonMobil Antwerp facility in Belgium (307,000 bpd).
