How Dangote Refinery is Affecting European Markets – OPEC

The Organisation of the Petroleum Exporting Countries (OPEC) has reported that the Dangote Refinery is significantly influencing European petroleum markets, particularly as Nigeria's importation of petroleum products has decreased.

This development follows the commencement of petrol production at the Dangote Refinery, which began operations in September 2024.

According to OPEC's latest findings, the establishment of the Dangote Refinery, with a daily capacity of 650,000 barrels, has altered traditional trade flows, reducing Nigeria's reliance on European imports.

The refinery's production capabilities surpass those of major European facilities, including Shell's Pernis refinery and BP's Rotterdam refinery, which have capacities of 404,000 and 380,000 barrels per day, respectively.

OPEC noted that as the Dangote Refinery ramps up its gasoline production and exports, it is likely to exert further pressure on the European gasoline market.

The shift in Nigeria's fuel supply dynamics is expected to free up additional gasoline volumes in international markets, necessitating adjustments in trade routes and destinations.

In December 2024, Nigeria's average daily crude production reached 1.507 million barrels which coincides with a broader trend of reduced imports of petroleum products into Nigeria, which OPEC attributes to the operational success of the Dangote Refinery.