The Traffic

"Dangote Refinery Poised to Disrupt European Gasoline Trade, Accelerate Refinery Closures"

The Dangote oil refinery, which began production in January, is set to revolutionize Nigeria's energy landscape and potentially disrupt the European gasoline trade. The $20 billion facility, with a capacity to refine up to 650,000 barrels per day, will be the largest in Africa and Europe when it reaches full capacity later this year.

Analysts and traders predict that the refinery will bring an end to the decades-long gasoline trade from Europe to Africa, worth $17 billion annually. This could lead to the closure of up to 90 European refineries, already under pressure from heightened competition.

Nigeria, Africa's most populous nation and top oil producer, currently imports almost all its fuel due to a lack of refining capacity. The Dangote refinery is expected to change this, making Nigeria self-sufficient in fuel production.

However, the refinery's success has been threatened by a recent controversy surrounding its integrity. Presidential candidate Rabiu Kwankwaso has urged the Federal Government to ensure the success of the refinery, describing it as a "national asset" that "cannot fail".

Kwankwaso's comments come as analysts predict that the refinery's production will lead to a surplus of gasoline in Europe, putting pressure on refining margins and potentially leading to the closure of refineries such as the UK's Grangemouth and Germany's Wesseling.