Bloomberg, a prominent financial data and media company, has revealed that the Dangote Refinery in Nigeria surpasses the top 10 largest refineries in Europe in terms of capacity.
Located on the Lekki-Epe Expressway in Lagos State, the $20 billion refinery boasts a capacity to refine 650,000 barrels of petroleum products per day, according to data compiled by Bloomberg.
This capacity exceeds that of several European refineries, including Shell’s Pernis Refinery in the Netherlands, which has an installed capacity of 404,000 barrels per day (bpd), making it the largest in Europe.
Other European refineries listed in the report include the BP Rotterdam Refinery in the Netherlands with a capacity of 380,000 bpd, the GOI Energy ISAB Refinery in Italy with 360,000 bpd, and the TotalEnergies Antwerp refinery in Belgium with 338,000 bpd, among others.
Describing the Dangote Refinery as a ‘game changer,’ Bloomberg noted its strategic advantage of leveraging cheaper US oil imports for a significant portion of its feedstock as it commences operations.
Analysts anticipate that the refinery, which has already begun shipping products, will have a significant impact on the gasoline markets in the Atlantic Basin.
Although currently operating at approximately 300,000 barrels per day, analysts project that the refinery will reach its full capacity soon, potentially reshaping the dynamics of the fuel market in Nigeria and the broader region.
Furthermore, Reuters recently reported that the Dangote Refinery’s entry into the market could disrupt the decades-long petrol trade from Europe to Africa, potentially affecting European refineries already facing heightened competition.
With the refinery already impacting the Nigerian market by lowering diesel pump prices from N1,600 to N940 in less than a month, its full-scale operation is anticipated to have far-reaching implications for both regional and global energy markets.
