The Organisation of Petroleum Exporting Countries, or OPEC, has stated that the Dangote Refinery is hurting European markets since Nigerian imports of petroleum products have plummeted. OPEC reported on Wednesday that in the fourth quarter of 2024, “imports also declined, particularly oil product imports, improving the outlook for the external sector.”
The Dangote Refinery, a $20 billion facility led by billionaire Aliko Dangote, began petrol production in September of last year, marking a key milestone in Nigeria’s energy sector. Dangote announced the accomplishment, stating, “This refinery will fuel growth, development, and prosperity by supplying energy to our people.”
According to figures from OPEC, Nigeria’s average daily crude production reached 1.507 million barrels in December. According to the OPEC report, the Dangote Refinery has a capacity of 650,000 barrels per day (bpd), which is 246,00bpd higher than Shell’s Pernis refinery in the Netherlands.
In addition, BP Rotterdam in the Netherlands has a capacity of 380,000 barrels per day. “The ongoing operational ramp-up operations at Nigeria’s new Dangote refinery, as well as its petrol (petrol) exports to the worldwide market, are likely to put additional pressure on the European petrol market.
“Continued petrol 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 petrol volumes in international markets, which will call for new destinations and flow adjustments for the extra volumes going forward,” the organisation said.
