According to traders and shipping data, Nigeria’s recently constructed Dangote oil refinery is increasing its gasoil shipments to West Africa, taking market share away from European refiners.
Reuters states that the $20 billion refinery is reportedly producing less gasoil than expected, as it waits for certain machines to produce cleaner fuels. This also comes at a time when the refinery is looking for international markets and investors.
The drop-down efficiently hit in June compared to May which saw the caàqompany reach nearly 100,000 barrels per day. This almost doubled April’s production.
Most of these exports were directed to other West African countries, with one shipment sent to Spain. Nonetheless, June’s produce; fuel oil, naphtha, and jet fuel, remained relatively high at 225,000 bpd.
This shift to West Africa has impacted exports to Europe, and also led to conflicts with other local refineries. However, it was a move that was coming considering the tight restrictions set in European hubs like Belgium. The laws are based on Sulphur content in petroleum products, a factor Dangote’s GasOil refinery has been unable to comply with.
Kpler data revealed that EU and UK gasoil exports to West Africa fell to a four-year low of 29,000 bpd in May, while Russian exports to the region dropped to an eight-month low of 87,000 bpd in the same month.
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