Dangote refinery begins gasoil exports to West African countries, as imports from Europe decline 

Nigeria’s new Dangote oil refinery is increasing gasoil exports to West Africa, capturing market share from European refiners.

The $20 billion refinery, still awaiting the restart of units to produce cleaner fuels, exported nearly 100,000 barrels per day (bpd) of gasoil in May, doubling April’s levels.

Most of these exports were to West African countries, with a shipment sent to Spain. However, June saw a significant drop in gasoil volumes, although overall oil product exports remained high at 225,000 bpd.

The refinery’s increased exports have impacted European markets, with EU and UK gasoil exports to West Africa falling to a four-year low in May.

Despite a local dispute over high-sulphur gasoil, the Petroleum Industry Bill passed in 2021 mandates a sulphur content of 50 parts per million (ppm) to comply with ECOWAS standards.

The regulator allowed the sale of higher sulphur gasoil locally until June to give refineries and importers time to adjust.

Aliko Dangote, Chairman of the Dangote refinery, stated that the refinery’s full capacity will supply West and Central Africa, as it exceeds Nigeria’s needs.

The shift in gasoil exports from Europe to West Africa supports predictions that the refinery could reduce Africa’s $17 billion in oil imports and potentially close some European refineries.

Source: Reuters