Dangote Refinery's Diesel and Jet Fuel Supplies to Disrupt Europe's Oil Industry, Says OPEC

The Organisation of Petroleum Exporting Countries (OPEC) has predicted that the Dangote Refinery in Nigeria will significantly impact Europe's oil industry, particularly the Northwest Europe (NWE) Gasoil market. In its June 2024 Oil Market Report, OPEC listed Dangote Refinery among the top suppliers of diesel and jet fuel that will disrupt Europe's oil and gas industry.

The report states that the refinery's production, combined with supplies from the Middle East and Mexico, will exert pressure on NWE gasoil performance in the mid-term. Europe, a significant purchaser of refined petroleum products, relies heavily on imports from Asia and the US due to the EU's ban on Russian diesel.

Dangote Refinery, with a capacity of 650,000 barrels per day, has already made an impact since commencing operations in January. The refinery has exported 90% of its production, mostly to Europe, due to a lack of support from the Nigerian government. BP has transported the refinery's first jet fuel cargo to Rotterdam, marking a significant milestone.

OPEC notes that European jet/kerosene demand is expected to increase as air travel activities pick up in the coming months. Dangote Group President, Aliko Dangote, announced plans to broaden the refinery's feedstock sources with crude from Libya, Angola, and Brazil.

This development is poised to positively impact the Nigerian economy, as the country seeks to reduce its reliance on imported refined petroleum products. As sub-Saharan Africa's largest oil producer, Nigeria aims to leverage the Dangote Refinery to meet domestic demand and become a significant player in the global oil market.