Dangote Oil Refinery is significantly increasing its diesel exports to West Africa, thereby capturing market share from European refiners, according to traders and shipping data. The operations of the $20 billion refinery, located in the Lekki area of Lagos, according to a report by Reuters, has spiked competition in the sub regional market, leading to the EU, UK, and Russian diesel exports to West Africa hitting multi-year lows.
In May, the refinery’s gasoil exports nearly doubled from April, reaching almost 100,000 barrels per day (bpd), as per data from analytics firm, Kpler. Most of these exports were directed to other West African countries, although one cargo was shipped to Spain.
However, preliminary data for June indicated a sharp decline in gasoil volumes. Despite this, overall oil product exports, including fuel oil, naphtha, and jet fuel, remained relatively high at 225,000 bpd.
A source noted that the refinery has “changed the balances in West Africa,” impacting European markets as a result. Data from Kpler 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, all due to the Dangote Refinery operations.
Yet, the management of the firm is upbeat about its increased operations in the weeks ahead. This comes on the heels of the restart of more units within the facility to produce higher volume. “We have commissioned more equipment, and it will be kick started within two weeks,” said the Vice President, Dangote Refinery, Devakumar Edwin.
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In similar vein, the Group Chief Branding and Communications Officer, Dangote Industries Limited, Anthony Chiejina, confirmed to The Nation, yesterday, that the refinery is set for greater output that will change the narrative in the country, sub region and beyond in no time.
“We assure the market of the best quality of petroleum products that can be found anywhere in the world. We cannot compromise on quality; Nigerian, African and global markets can be rest assured of premium quality from our refinery,” Chiejina said.