Bloomberg, a financial data and media company, has ranked the Dangote Refinery higher than the top 10 largest refineries in Europe. Data compiled by the business news platform indicates that the refinery surpasses many European counterparts in capacity.
Situated along the Lekki-Epe Expressway in Lagos State, the refinery, valued at $20 billion, has the capability to process 650,000 barrels of petroleum products daily. According to the report obtained by our correspondent on Thursday, this exceeds the capacity of several European refineries by over 246,000 barrels per day, including Shell’s Pernis Refinery in the Netherlands, which holds the title of the largest in Europe with an installed capacity of 404,000 barrels per day.
Furthermore, Bloomberg noted that the GOI Energy ISAB Refinery in Italy was constructed with a refining capacity of 360,000 barrels per day, while the TotalEnergies Antwerp refining facility in Belgium can refine 338,000 barrels per day.
Also included in the report were the following refineries: Orlen Plock Refinery in Poland, with a capacity of 327,000 barrels per day; Shell’s Rheinland in Germany, also with a capacity of 327,000 barrels per day; Miro Refinery in Germany, boasting a capacity of 310,000 barrels per day; and the ExxonMobil Antwerp Refinery in Belgium, with a capacity of 307,000 barrels per day.
The report further highlighted the Saras Sarroch Refinery in Italy, with a capacity of 300,000 barrels per day, and the ExxonMobil Fawley Refinery in England, with a capacity of 270,000 barrels per day.
The Bloomberg report characterized the Dangote Refinery as a ‘game changer,’ noting its utilization of cheaper US oil imports for up to a third of its feedstock during its startup phase. Analysts observed that the refinery has begun shipping products in recent weeks while preparing two units to facilitate petrol output, a development poised to revolutionize the fuel market in Nigeria and the wider region.
“Dangote is poised to exert influence over Atlantic Basin gasoline markets this summer and beyond,” remarked oil expert Alan Gelder to Bloomberg.
Analysts from WoodMac, FGE, and Citac estimate that the refinery is currently operating at approximately 300,000 barrels per day, nearly half of its nameplate capacity. The facility has commenced the shipment of jet fuel, diesel, and naphtha, expanding its production to encompass a full range of products.
Reuters recently disclosed that the Dangote oil refinery has the potential to disrupt a longstanding petrol trade route from Europe to Africa, which is valued at $17 billion annually. Citing analysts and traders, Reuters highlighted that the Dangote refinery is exerting pressure on European refineries, many of which are already facing closure due to intensified competition. The report noted that once the Dangote refinery reaches full capacity, it will be the largest in both Africa and Europe.
According to Reuters, quoting data from Kpler, approximately one-third of Europe’s average petrol exports of 1.33 million barrels per day in 2023 were destined for West Africa, with Nigeria being the primary recipient. The Dangote Refinery has already commenced the sale of diesel in the Nigerian market, leading to a significant drop in pump prices from N1,600 to N940 within a month.
