- OPEC acknowledges the Dangote Petroleum Refinery’s significant influence on the European petrol market, with increasing exports of Premium Motor Spirit (PMS)
- The refinery’s operations have led to reduced European petrol imports to Nigeria and are expected to reshape global gasoline trading patterns
- At 650,000 barrels per day, the Dangote refinery is now one of the largest in the world, surpassing several major European facilities
The Organisation of the Petroleum Exporting Countries (OPEC) has acknowledged that the Dangote Petroleum Refinery and its growing production of Premium Motor Spirit (PMS) are having a significant impact on the petrol market in Europe.
The 650,000-barrel-per-day Dangote refinery, which began operations in January 2024, began producing PMS in September.
This marks a major shift for Nigeria, which had long relied on imports for its fuel needs. Since its launch, the refinery has not only met domestic demand but has also started exporting petrol, diesel, and aviation fuel to countries within and outside Africa.
OPEC’s report, published on Wednesday, January 15, noted that Dangote Refinery’s operation has led to a decline in petroleum product imports from Europe to Nigeria.
The refinery’s ramped-up production of gasoline and its export activities are expected to further impact the European gasoline market.
“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,” the report stated.
It added that the refinery’s continued production would free up gasoline volumes in international markets, which could lead to new destination markets and adjustments in fuel flows.
OPEC’s report highlighted the adjustment in the gasoline market, noting that despite healthy exports, gasoline inventories at the Amsterdam-Rotterdam-Antwerp (ARA) storage hub remained high.
As winter season demand pressures build, inventory levels are expected to continue rising, exacerbating the already bearish sentiment in the gasoline market.
The refinery’s impact on the European market comes at a time when gasoline production in Nigeria, a nation historically reliant on imports, is increasing. This shift is expected to further adjust global fuel flows and create new trading patterns.
In addition to its impact on the gasoline market, OPEC reported that Nigeria’s average daily crude production rose to 1.507 million barrels per day (bpd) in December, an increase of 12,000 bpd from November’s 1.477 million bpd.
This figure aligns with the data supplied by the Nigerian government and the Nigerian Upstream Petroleum Regulatory Commission.
The Dangote refinery, which boasts a refining capacity of 650,000 bpd, is now ranked among the largest refineries in the world, surpassing several major European facilities.
According to data from Bloomberg, the Dangote refinery's capacity exceeds that of Europe’s largest refinery, Shell’s Pernis refinery in the Netherlands, which has an installed capacity of 404,000 bpd.
Other notable refineries in Europe, such as BP’s Rotterdam facility (380,000 bpd) and TotalEnergies’ Antwerp facility (338,000 bpd), are also smaller in comparison.
OPEC extends Nigeria’s 1.5 million bpd oil production quota to 2026
Meanwhile, TheRadar earlier reported that the Organisation of Petroleum Exporting Countries (OPEC) extended Nigeria’s oil production quota of 1.5 million barrels of crude per day (bpd) to December 2026.
The decision to extend Nigeria’s quote was made at its 38th OPEC and non-OPEC ministerial meeting, held on Thursday, December 5.
