The Dangote Petroleum Refinery, with a capacity of 650,000 barrels per day, is capitalizing on cheaper oil imports from the United States, accounting for up to a third of its feedstock as it commences production. According to Bloomberg, the refinery has begun shipping products while preparing units for gasoline production, poised to revolutionize the fuel market in Nigeria and the region, as noted by analysts.
Alan Gelder, Vice President of Refining, Chemicals, and Oil Markets at Wood Mackenzie, highlighted the refinery’s potential to impact Atlantic Basin gasoline markets significantly. The introduction of a residue fluid catalytic cracking unit (RFCC) is expected to further disrupt the West African gasoline supply balance.
Analysts estimate the refinery’s current production at approximately 300,000 barrels per day, nearing half of its nameplate capacity. It has commenced shipping jet fuel, gasoil, and naphtha, with gasoline-focused units expected to come online this summer, potentially transforming the fuel landscape in the region.
Source: Bloomberg