OPEC says Dangote Refinery affecting European refineries sales

The Organisation of Petroleum Exporting Countries (OPEC) says the Dangote Refinery is affecting European markets, noting that importation of petroleum products in Nigerian has dropped reasonably.

OPEC in a report on Wednesday disclosed that in the last quarter of 2024, “imports also declined, particularly oil product imports, improving the outlook for the external sector.”

In September last year, Dangote Refinery, a $20 billion project spearheaded by billionaire Aliko Dangote, officially begun petrol production, marking a significant milestone in Nigeria’s energy sector.

Announcing the feat, Dangote said: “This refinery will fuel growth, development, and prosperity by supplying energy to our people.”

According to OPEC, the average daily crude production in Nigeria hit 1.507 million barrels in December.

The OPEC report noted that the Dangote Refinery, at 650,000 barrels per day capacity, is 246,00bpd more than Shell’s Pernis refinery in the Netherlands. Also, BP Rotterdam in the Netherlands has 380,000 bpd capacity.

“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,” OPEC said.