In a recent report, renowned financial data and media company Bloomberg has ranked the Dangote Refinery above Europe’s top 10 largest refineries.
The refinery, situated on the Lekki-Epe Expressway in Lagos State, Nigeria, boasts a remarkable capacity that surpasses many of its European counterparts.
With a staggering worth of $20 billion, the Dangote Refinery has the capability to refine an impressive 650,000 barrels of petroleum products each day. This capacity exceeds that of Shell’s Pernis Refinery in the Netherlands, which stands as the largest in Europe with an installed capacity of 404,000 barrels per day. Additionally, the BP Rotterdam Refinery in the Netherlands holds a capacity of 380,000 barrels per day, according to the report.
Bloomberg’s findings also shed light on other notable European refineries. 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. The report further mentions the Orlen Plock Refinery in Poland with a capacity of 327,000 barrels per day, Shell’s Rheinland in Germany with the same capacity of 327,000 barrels per day, the Miro Refinery in Germany with a capacity of 310,000 barrels, and the ExxonMobil Antwerp Refinery in Belgium with a capacity of 307,000 barrels.
The Dangote Refinery, dubbed a “game changer” in the report, has taken advantage of cheaper US oil imports for approximately one-third of its feedstock as it commenced operations. Experts believe the refinery will have a significant impact on the Atlantic Basin gasoline markets throughout the summer and beyond.
Analysts estimate that the Dangote Refinery is currently operating at about 300,000 barrels per day, nearly half of its nameplate capacity. In recent weeks, the refinery has begun shipping jet fuel, diesel, and naphtha, gradually expanding its range of products. Furthermore, Reuters reported that the Dangote oil refinery has the potential to disrupt the petrol trade from Europe to Africa, which is valued at $17 billion annually.
This development places additional pressure on European refineries already facing competition and potential closure. Upon reaching full capacity, the Dangote Refinery is set to become the largest in both Africa and Europe.
In a positive turn for Nigerian consumers, the Dangote Refinery has already made an impact on the local market by selling diesel at significantly reduced prices. In less than a month, the pump price has dropped from N1,600 to N940.
The progress made by the Dangote Refinery signifies a substantial transformation in the Nigerian fuel market and is poised to have a lasting impact on the region. With its impressive capacity and strategic initiatives, the refinery is set to redefine the dynamics of the petroleum industry in Africa and beyond.
