Dangote Refinery’s Petrol Production And Exports, Nigeria’s Less Reliance On Importation Affecting European Market – OPEC
A fresh report by the Organisation of Petroleum Exporting Countries has shown that the Dangote refinery’s production of petrol may affect European refining market.
According to the report, the operations of Dangote refinery will have impact on the European gasoline market.
The report reads, “The gasoline crack spread in Rotterdam against Brent increased slightly on healthy exports although gasoline inventories at the Amsterdam-Rotterdam-Antwerp storage hub remained high.
“The gasoline inventory builds are expected to extend into the coming month amid a lengthening gasoline balance in the Atlantic Basin due to winter-season demand-side pressures.
“The ongoing recovery in gasoline refinery output levels will likely exacerbate the already bearish market sentiment. Moreover, 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 noted that continued gasoline production in Nigeria will lead to flow adjustments and new destinations for extra volumes going forward.
“Continued gasoline 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 gasoline volumes in international markets which will call for new destinations and flow adjustments for the extra volumes going forward,” it said.
“Similarly, European light distillates continue to lose ground on the back of increasingly lighter and sweeter refinery crude diets in Europe and sanctioned Russian crude imports, leading to stronger naphtha production.”
Once fully operational, the $20 billion Dangote refinery will have the capacity to refine an impressive 650,000 barrels of crude oil daily, making it a significant player in the global refining industry.
