The Organisation of the Petroleum Exporting Countries (OPEC) has highlighted the growing influence of Nigeria’s Dangote Petroleum Refinery on global fuel markets, particularly in Europe.
According to OPEC’s latest report, the refinery’s increasing production of Premium Motor Spirit (PMS), or petrol, is reshaping international trade flows and creating challenges for European fuel exporters.
The Dangote Refinery, which has a daily refining capacity of 650,000 barrels, officially began operations in January 2024.
By September of the same year, it started producing petrol, diesel, and aviation fuel, marking a significant shift for Nigeria, which had long depended on fuel imports to meet domestic demand.
Since then, the refinery has been exporting refined products to various countries within Africa and beyond.
OPEC noted that the Dangote Refinery has significantly reduced Nigeria’s reliance on fuel imports, especially from Europe.
The report stated, “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.”
In the last quarter of 2024, OPEC said “imports also declined, particularly oil product imports, improving the outlook for the external sector.”
Meanwhile, Europe’s gasoline inventory levels remained high, with stockpiles in key storage hubs like Amsterdam-Rotterdam-Antwerp expected to grow further due to lower winter-season demand.
OPEC also noted that increasing refinery output worldwide, including in Nigeria, is likely to maintain bearish market conditions for gasoline prices in the Atlantic Basin.
The report highlighted the global significance of the Dangote Refinery, comparing it favorably to Europe’s largest refineries. With a refining capacity of 650,000 barrels per day, it surpasses major European facilities like Shell’s Pernis refinery in the Netherlands, which has an installed capacity of 404,000 barrels per day.
Additionally, OPEC revealed that Nigeria’s crude oil production averaged 1.507 million barrels per day in December 2024, marking an increase from the previous month. This production level was confirmed by data from the Nigerian Upstream Petroleum Regulatory Commission.
