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Released February 20, 2025 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Africa's largest crude processing facility, the Dangote oil refinery in Nigeria, is on track to hit full production capacity of 650,000 barrels per day (BBL/d) as soon as next month.
Industrial Info data show that the lone crude distillation unit (CDU) at the refinery is operating at 90% through until the end of the month due to crude availability issues - something that has been a recurring problem over the past number of months, due to ongoing issues with Nigerian crude suppliers. In addition, the refinery's petrol/gasoline-making unit - the Residue Fluidized Catalytic Cracking Unit - will be operating at 70% until mid-March due to mechanical issues and the delay in completion of some of the downstream units. Subscribers to Industrial Info's Global Market Intelligence (GMI) Offline Events Database can click here and here for the reports.
Just over a year after it was commissioned, the refinery is at 85% capacity, according to the head of the refinery, Edwin Devakumar. "We can go 100 percent in 30 days," he told Reuters.
Click on the image at right for a chart showing the Lekki (Dangote) Refinery's month-by-month capacity.
The refinery, founded by Nigeria's richest man Aliko Dangote, is aiming to meet 100% of Nigeria's demand for all refined petroleum products as well as having more of each to export. Roughly 300,000 BBL/d would cover Nigeria's total domestic demand for petrol (gasoline), leaving plenty for export abroad. Before Dangote, Nigeria relied completely on imports of refined products, especially from Europe, despite being the largest oil producing nation in Africa. Analysts believe that the refinery could cut Africa's reliance on European imports by up to half in the coming years. In 2023, European Union (EU) figures showed that exports of fuels to Nigeria in 2023 amounted to almost 96% of all exports and were worth more than 21.6 billion euro (US$22.5 billion). According to research by Argus Global Markets: "Nigeria is a major gasoline importer and took in 250,000 BBL/d from refineries in the Atlantic basin and beyond last year. Three-quarters of those cargoes came from Europe, but Russia is increasingly becoming a key supplier. This major import market will largely vanish when Dangote's secondary units start up." In addition, Europe is the largest market for Nigerian crude, absorbing just over half of its exports last year, according to data from oil analytics firm Vortexa. Industrial Info is tracking 10 projects at Dangote worth more than US$2.5 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
A recent report from OPEC, stated: "The ongoing operational ramp-up efforts at Nigeria's new Dangote refinery and its gasoline (petrol) exports to the international market will likely weigh further on the European gasoline market. Continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up gasoline volumes in international markets which will call for new destinations and flow adjustments for the extra volumes going forward."
Located in the Lekki Free Zone near the city and major port of Lagos, the state-of-the-art US$20.5 billion refinery was commissioned in January 2024. Dangote, which is larger than any European refinery, sits on a sprawling 6,200-acre site and has the scale to change the trading dynamic that has existed for decades. Last summer it was processing roughly 350,000 BBL/d and by January this had risen to 500,000 BBL/d. Local importers - and European exporters - are already feeling the impact. In recent weeks, the company reduced the ex-depot price of diesel for the third time in recent months, from an initial N1,700 (US$1.12) per litre to the current rate of N540 (US$0.36), which has been popular with consumers and businesses but has put massive pressure on traditional importers of refined products who have to deal with foreign suppliers, shipping costs, international pricing shifts and currency fluctuations. The refinery cited improved production efficiency and the ability to source crude oil locally. The refinery has also been trimming petrol prices since January. "This is a game-changer for the industry," said Tunde Ojo, an independent oil marketer with the Independent Petroleum Marketers Association of Nigeria, speaking to Business Daily. "Importers, who cannot match Dangote's prices, will either have to exit the market or find new ways to stay afloat. The days of relying solely on diesel imports are numbered."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Industrial Info data show that the lone crude distillation unit (CDU) at the refinery is operating at 90% through until the end of the month due to crude availability issues - something that has been a recurring problem over the past number of months, due to ongoing issues with Nigerian crude suppliers. In addition, the refinery's petrol/gasoline-making unit - the Residue Fluidized Catalytic Cracking Unit - will be operating at 70% until mid-March due to mechanical issues and the delay in completion of some of the downstream units. Subscribers to Industrial Info's Global Market Intelligence (GMI) Offline Events Database can click here and here for the reports.
Just over a year after it was commissioned, the refinery is at 85% capacity, according to the head of the refinery, Edwin Devakumar. "We can go 100 percent in 30 days," he told Reuters.
The refinery, founded by Nigeria's richest man Aliko Dangote, is aiming to meet 100% of Nigeria's demand for all refined petroleum products as well as having more of each to export. Roughly 300,000 BBL/d would cover Nigeria's total domestic demand for petrol (gasoline), leaving plenty for export abroad. Before Dangote, Nigeria relied completely on imports of refined products, especially from Europe, despite being the largest oil producing nation in Africa. Analysts believe that the refinery could cut Africa's reliance on European imports by up to half in the coming years. In 2023, European Union (EU) figures showed that exports of fuels to Nigeria in 2023 amounted to almost 96% of all exports and were worth more than 21.6 billion euro (US$22.5 billion). According to research by Argus Global Markets: "Nigeria is a major gasoline importer and took in 250,000 BBL/d from refineries in the Atlantic basin and beyond last year. Three-quarters of those cargoes came from Europe, but Russia is increasingly becoming a key supplier. This major import market will largely vanish when Dangote's secondary units start up." In addition, Europe is the largest market for Nigerian crude, absorbing just over half of its exports last year, according to data from oil analytics firm Vortexa. Industrial Info is tracking 10 projects at Dangote worth more than US$2.5 billion. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
A recent report from OPEC, stated: "The ongoing operational ramp-up efforts at Nigeria's new Dangote refinery and its gasoline (petrol) exports to the international market will likely weigh further on the European gasoline market. Continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up gasoline volumes in international markets which will call for new destinations and flow adjustments for the extra volumes going forward."
Located in the Lekki Free Zone near the city and major port of Lagos, the state-of-the-art US$20.5 billion refinery was commissioned in January 2024. Dangote, which is larger than any European refinery, sits on a sprawling 6,200-acre site and has the scale to change the trading dynamic that has existed for decades. Last summer it was processing roughly 350,000 BBL/d and by January this had risen to 500,000 BBL/d. Local importers - and European exporters - are already feeling the impact. In recent weeks, the company reduced the ex-depot price of diesel for the third time in recent months, from an initial N1,700 (US$1.12) per litre to the current rate of N540 (US$0.36), which has been popular with consumers and businesses but has put massive pressure on traditional importers of refined products who have to deal with foreign suppliers, shipping costs, international pricing shifts and currency fluctuations. The refinery cited improved production efficiency and the ability to source crude oil locally. The refinery has also been trimming petrol prices since January. "This is a game-changer for the industry," said Tunde Ojo, an independent oil marketer with the Independent Petroleum Marketers Association of Nigeria, speaking to Business Daily. "Importers, who cannot match Dangote's prices, will either have to exit the market or find new ways to stay afloat. The days of relying solely on diesel imports are numbered."
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
