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The supply of diesel from the Dangote Oil Refinery is set to have a significant impact on European refiners, potentially ending the importation of the product from Europe. Currently, Nigeria relies heavily on importing refined products, with an estimated value of $17 billion annually. However, the emergence of the Dangote Oil Refinery is expected to mount pressure on European refineries, which are already at risk of closure due to heightened competition.
The Dangote Oil Refinery, which began production in January, is the largest in Africa and Europe, with a refining capacity of up to 650,000 barrels per day. Once it reaches full capacity, it is projected to supply approximately 327,000 barrels per day of gasoline and 244,000 barrels per day of diesel to Nigeria. This significant increase in local supply is expected to reduce the need for imports and significantly impact the market for European refiners.
Analysts and traders familiar with the European market have revealed the potential closures of European refineries due to declining exports to Nigeria and other West African countries. Farai Ronoledi, an oil trader, stated that the emergence of the Dangote Oil Refinery shows a paradigm shift in the global refining.
This article was updated 1 month ago
