Dangote Refinery affecting European markets – OPEC cries out
The Organisation of Petroleum Exporting Countries (OPEC) said that the European markets are greatly affected by the production from Dangote Refinery as the importation of petroleum products in Nigeria has dropped.
According to a report on Wednesday by OPEC, in the last quarter of 2024, “imports also declined, particularly oil product imports, improving the outlook for the external sector.”
The Informant247 reports that Dangote Refinery had in September 2024 launched a $20 billion project spearheaded by billionaire Aliko Dangote, marking a significant milestone in Nigeria’s energy sector.
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However, according to OPEC’s data, the average daily crude production in Nigeria hit 1.507 million barrels in December, noting that the Dangote Refinery, at 650,000 barrels per day, bpd capacity, is 246,00bpd more than Shell’s Pernis refinery in the Netherlands. Also, BP Rotterdam in the Netherlands has a 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 stated.
Source: Vanguard newspaper
