The Organisation of Petroleum Exporting Countries (OPEC) has stated that the supply from Nigeria’s Dangote Refinery and Petrochemicals, which is the world’s largest single-train refinery, will challenge the performance of Europe’s oil industry, particularly affecting the Northwest Europe Gasoil market.
In its latest June 2024 Oil Market Report, OPEC identified the Dangote Refinery as one of the leading suppliers of diesel and jet fuel that could disrupt Europe’s oil and gas industry. Experts predict this development will have a positive impact on the Nigerian economy.
Standard & Poor’s Global, citing trading sources and ship tracking data, previously predicted that Nigeria’s $20 billion Dangote Refinery would significantly disrupt international crude flows once it reaches full capacity. The refinery has already begun to make an impact since it became operational in January.
The OPEC report revealed that, “Upside potential for higher production levels from Nigeria’s Dangote refinery, coupled with strong flows from the Middle East and new supplies from the Mexican Olmeca refinery, will likely exert pressure on NWE gasoil performance in the mid-term.”
The OPEC report stated further “Europe is one of the world’s largest purchasers of refined petroleum products and relied on imports from Asia and the US after the European Union banned the use of Russian diesel in the bloc.’’
The 650,000bpd capacity refinery is eyeing the wider European market after International Oil Companies stopped supplying its crude oil.
Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, announced the company had earlier exported its first jet fuel cargo to Europe as it rapidly scales production.
“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 percent of our production, have been exported,” Edwin said
BP is currently transporting its first jet fuel cargo to Rotterdam from Dangote, after being awarded part of a 120,000 metric tonnes tender offered for the end of May, according to S&P Global.
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