Dangote refinery begins exporting gasoil to West African countries as imports from Europe fall

Nigeria’s new Dangote oil refinery is ramping up gasoil exports to West Africa, capturing market share from European refiners, according to traders and shipping data.
According to Reuters, the $20 billion refinery is currently producing a lower grade of gasoil than anticipated as it awaits the restart of units necessary for producing cleaner fuels.
Consequently, the refinery is seeking buyers in neighbouring markets.
In May, gasoil exports from the refinery reached nearly 100,000 barrels per day (bpd), almost doubling April’s levels, data from analytics firm Kpler indicated. Most of these exports were directed to other West African countries, with one shipment sent to Spain.
However, preliminary data for June shows a significant drop in gasoil volumes, although overall oil product exports, including fuel oil, naphtha, and jet fuel, remained relatively high at 225,000 bpd.
Earlier in May, the Chairman of the Dangote refinery, Aliko Dangote had stated that when fully completed, the refinery will supply product to West and Central African countries as its capacity is too big for Nigeria alone.
This decline in gasoil exports from Europe to West Africa confirms earlier reports by Reuters which stated that the refinery has the potential to reduce the $17 billion in oil imports into the continent and even lead to the closure of some European refineries.

Source: nairametrics

EntekHub.com

All Author Posts