Bloomberg, a financial data and media company, ranked the Dangote Refinery in Nigeria above the top 10 biggest refineries in Europe based on its capacity to refine petroleum products.
The Dangote Refinery, worth $20 billion and located in Lagos State, Nigeria, has a refining capacity of 650,000 barrels per day (bpd), surpassing several major European refineries in capacity.
Notably, the Dangote Refinery’s capacity exceeds that of Shell’s Pernis Refinery in the Netherlands, which is the largest in Europe with an installed capacity of 404,000 bpd.
Other European refineries mentioned in the Bloomberg report include the BP Rotterdam Refinery in the Netherlands, the GOI Energy ISAB Refinery in Italy, and the TotalEnergies Antwerp refining facility in Belgium.
The Dangote Refinery is described as a “game changer” by Bloomberg, taking advantage of cheaper US oil imports for a significant portion of its feedstock as it begins operations.
Analysts anticipate that the Dangote Refinery’s operations will lead to a transformation of the fuel market in Nigeria and the region, as it starts shipping products and prepares to increase petrol output.
“Dangote is going to influence Atlantic Basin gasoline markets this summer and for the rest of the year,” an oil expert, Alan Gelder, told Bloomberg.
Analysts from WoodMac, FGE, and Citac estimate that the Dangote Refinery is currently operating at around 300,000 barrels per day, which is nearly half of its total capacity.
The refinery has commenced shipping jet fuel, diesel, and naphtha, expanding its range of products.
Reuters reported that the Dangote oil refinery has the potential to disrupt the decades-long petrol trade from Europe to Africa, valued at $17 billion annually.
The refinery’s impact is putting pressure on European refineries facing closure due to increased competition.
Once at full capacity, it will be the largest refinery in both Africa and Europe.
West Africa, particularly Nigeria, receives a significant portion of Europe’s petrol exports, with about a third of Europe’s average petrol exports in 2023 going to the region.
Dangote Refinery’s entry into the Nigerian diesel market has led to a significant drop in pump prices from N1,600 to N940 in less than a month.