Dangote Refinery Revolutionizes Global Diesel Market

Dangote Oil Refinery in Nigeria is poised to disrupt the global refining market with a production capacity of 550,000 barrels per day. It recently began exporting gasoline and other products, with plans to ship Euro V gasoline to various international markets. Pricing and distribution challenges persist locally.

The Dangote Oil Refinery, built by Nigerian billionaire Aliko Dangote on the outskirts of Lagos, is set to impact the global refining market, boasting a production capacity of 550,000 barrels per day. The refinery, which started operations in January, produces a variety of petroleum products, including winter diesel for the European market.

According to Edwin Devakumar, the head of the refinery, the Dangote facility will export surplus products such as gasoline, diesel, jet fuel, and polypropylene, targeting West African and Caribbean markets. Euro V gasoline shipments are expected to commence by the end of the year, marking a significant milestone for the refinery.

Locally, despite challenges in distributing petrol due to pricing issues and previous reliance on the state-owned NNPC, the Independent Petroleum Marketers Association of Nigeria recently struck a deal to purchase refinery output at competitive prices. With the NNPC ceasing petrol imports, the refinery looks to strengthen its domestic market presence.

(With inputs from agencies.)