Nigeria’s Dangote refinery, Africa’s largest and newest crude processing facility, is nearing the start of gasoline production, which could significantly alter global gasoline flows.
For years, Nigeria has relied on imports to meet its gasoline needs. However, the new refinery is on track to transform the country from a gasoline importer to an exporter. This shift could affect fuel markets, particularly in Europe.
The Dangote refinery began producing fuels in January 2024, marking a significant milestone after several delays. While it has not yet started gasoline production, sources close to the operation told Bloomberg that it is close to doing so.
The refinery processes primarily Nigerian crude oil but also imports crude from the U.S. and Brazil. With a capacity of 650,000 barrels per day, the facility will not only satisfy Nigeria’s entire demand for refined petroleum products but will also have a surplus for export.
Once fully operational, expected in 2025, the refinery plans to dedicate over half of its capacity to gasoline production. The Dangote refinery aims to export diesel to Europe and gasoline to markets in Latin America and Africa. However, production of Euro V gasoline, which meets Europe’s emissions standards, is not expected to start until late 2024, according to Facts Global Energy analysts.
In mid-June, Aliko Dangote, president of the Dangote Group, announced a delay in gasoline deliveries, initially set for mid-July. Dangote, Africa’s richest man, had anticipated the refinery would begin gasoline distribution by the third week of July. This timeline has now shifted, but industry experts predict that substantial volumes of Nigerian gasoline will reach international markets next year.