By DAYO ADESULU
The Organisation of the Petroleum Exporting Countries (OPEC) has acknowledged the significant impact of the Dangote Petroleum Refinery on the global Premium Motor Spirit (PMS) market, particularly in Europe.
In its latest report released on Wednesday, OPEC highlighted that the operational ramp-up of the 650,000-barrels-per-day (bpd) capacity Dangote Refinery—operational since January 2024—has reduced Europe’s petrol exports to Nigeria.
Key Insights from the OPEC Report
- Shift in Fuel Import Patterns:
- For decades, Nigeria relied heavily on imported petroleum products to meet its domestic needs. However, with the Dangote Refinery producing PMS, diesel, and aviation fuel since September, Europe’s fuel export volume to Nigeria has notably declined.
- Impact on European Market:
- OPEC stated, “The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline exports to the international market will likely weigh further on the European gasoline market.”
- Increased gasoline production in Nigeria has created a surplus in international markets, prompting exporters to adjust trade flows and find new destinations.
- Refining Capacity Comparisons:
- The Dangote Refinery, with its $20 billion investment and capacity of 650,000bpd, surpasses several of Europe’s largest refineries.
- Notable comparisons:
- Shell’s Pernis Refinery (Netherlands): 404,000bpd.
- BP Rotterdam (Netherlands): 380,000bpd.
- TotalEnergies Antwerp (Belgium): 338,000bpd.
- Global Supply and Demand Dynamics:
- Europe’s gasoline inventory remains high, with OPEC predicting extended inventory builds due to winter-season demand pressures and Nigeria’s growing PMS production.
Nigeria’s Crude Oil Production
OPEC’s Monthly Oil Market Report noted Nigeria’s average daily crude oil production for December was 1.507 million barrels per day (bpd), reflecting a 12,000bpd increase from November.
The Nigerian government reported a slightly lower figure of 1.485 million bpd, aligning with the Nigerian Upstream Petroleum Regulatory Commission’s data.
Significance of Dangote Refinery
- Export Leadership: Since starting operations, the refinery has exported petroleum products across Africa and beyond, positioning Nigeria as a key player in the global oil refining market.
- Reduced Dependence: By meeting local fuel demands, Nigeria can save foreign exchange previously spent on imports, improve trade balances, and boost economic stability.
Global Recognition
The Dangote Refinery has been ranked above Europe’s largest refineries, cementing its status as a game-changer in global oil refining.
