Bloomberg, a leading financial data and media firm, has placed the Dangote Refinery higher in rank than the top 10 largest refineries in Europe based on its processing capacity.
The refinery, which is situated along the Lekki-Epe Expressway in Lagos State and valued at $20 billion, boasts a substantial daily capacity of 650,000 barrels of petroleum products. This surpasses Shell's Pernis Refinery in the Netherlands, the largest in Europe, which has a capacity of 404,000 barrels per day (bpd). Close behind is the BP Rotterdam Refinery, also in the Netherlands, with a capacity of 380,000 bpd.
Other notable refineries include the GOI Energy ISAB Refinery in Italy and the TotalEnergies Antwerp facility in Belgium, with capacities of 360,000 bpd and 338,000 bpd, respectively.
Further comparisons show the Orlen Plock Refinery in Poland and Shell’s Rheinland Refinery in Germany each with a capacity of 327,000 bpd. Germany's Miro Refinery and the ExxonMobil Antwerp Refinery in Belgium follow with capacities of 310,000 bpd and 307,000 bpd, respectively. The Saras Sarroch Refinery in Italy and the ExxonMobil Fawley in England round out the list with capacities of 300,000 bpd and 270,000 bpd, respectively.
Bloomberg has characterized the Dangote Refinery as a pivotal development in the industry, noting its strategic use of cheaper U.S. oil imports for up to a third of its feedstock. The refinery is already making significant strides in the market, having started to export jet fuel, diesel, and naphtha, and is preparing for full-scale petrol production.
Industry experts, including Alan Gelder of WoodMac, highlight the refinery’s potential to reshape the gasoline markets in the Atlantic Basin starting this summer. Current operations are at about 300,000 barrels a day, approximately half of its full capacity.
The impact of the Dangote Refinery extends beyond Nigeria, as it poses a competitive threat to European refineries. Analysts suggest that the refinery could significantly reduce Africa's dependency on European petrol imports, which amounted to $17 billion last year. About a third of Europe’s petrol exports, averaging 1.33 million bpd in 2023, were directed towards West Africa, predominantly Nigeria.
Recently, the refinery commenced diesel sales in the Nigerian market, dramatically reducing the local pump price from N1,600 to N940 within a month, indicating a promising start to its broader market influence.
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