The Organization of the Petroleum Exporting Countries (OPEC) has highlighted the significant impact of Nigeria’s Dangote Petroleum Refinery on the European Premium Motor Spirit (PMS) market.
The refinery, which has a capacity of 650,000 barrels per day (bpd), commenced operations in January 2024 and began producing PMS in September of the same year.
In a report released on Wednesday, OPEC stated that the refinery’s production and export activities have reduced Nigeria’s reliance on imported fuel, particularly from Europe. The report noted that the facility, which also produces diesel and aviation fuel, has begun exporting these products to markets within and beyond Africa.
“The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline (petrol) exports to the international market will likely weigh further on the European gasoline market,” OPEC said.
The organization explained that the increase in domestic petrol production in Nigeria, which had historically depended on imports to meet fuel demand, is freeing up significant volumes in international markets, prompting adjustments in trade flows and destination points for European gasoline exports.
OPEC noted that gasoline inventory levels in the Amsterdam-Rotterdam-Antwerp (ARA) hub remained high, and the market is experiencing a build-up of supplies amid seasonal demand pressures during winter.
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The report added that the gasoline crack spread in Rotterdam against Brent crude showed a slight increase due to healthy exports. However, the ongoing recovery in global refinery output is expected to add further bearish sentiment to the market.
The report also revealed an increase in Nigeria’s crude oil production. According to data obtained by OPEC from secondary sources, average daily production rose to 1.507 million barrels per day (mbpd) in December 2024, up by 12,000 bpd from 1.477 mbpd in November. Official figures from the Nigerian government and the Nigerian Upstream Petroleum Regulatory Commission put the December output slightly lower at 1.485 mbpd.
Ranked as one of the largest refineries in the world, the $20 billion Dangote Refinery outpaces the capacity of Europe’s biggest refineries. According to data compiled by Bloomberg, its capacity exceeds Shell’s Pernis refinery in the Netherlands (404,000 bpd), BP Rotterdam in the Netherlands (380,000 bpd), and TotalEnergies Antwerp in Belgium (338,000 bpd).
With a refining capacity of 650,000 bpd, the Dangote Refinery has significantly reshaped the landscape of global fuel production, earning its place as a transformative player in the industry.