Dangote Refinery on Track for Full Operational Capacity in 30 Days

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The Dangote Oil Refinery, the largest in Africa is projected to reach full capacity within 30 days. Once operational, it aims to challenge European suppliers and shake up the European oil market. The refinery is also looking to expand its market by supplying jet fuel to Saudi Aramco and establishing a presence in key aviation hubs.

Owned by Africa’s wealthiest individual, Aliko Dangote, the refinery has been producing diesel, naphtha, and jet fuel since January last year, with petrol production commencing in September. Edwin Devakumar, the refinery’s head, reported that it is currently operating at 85% capacity and expects to reach full capacity in 30 days. Despite its ambitions to compete with European suppliers, the refinery has encountered difficulties securing sufficient local crude supplies.

OPEC notes that Dangote’s efforts in Nigeria are already impacting the European oil market. Economists believe the Dangote refinery could potentially end the USD 17 billion annual gasoline trade from Europe to Africa. However, challenges persist, as the refinery imported crude last year due to local shortages, despite a government agreement to buy crude in naira.

For the first half of this year, the refinery has requested 550,000 barrels per day from Nigerian oil producers, and the oil regulator has warned it will block export permits for those who do not meet local supply quotas. The Dangote Oil Refinery is actively exploring new markets, having recently sent two cargoes of jet fuel to Saudi Aramco, signalling a move toward global expansion.

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According to S&P Global Commodity Insights, the Dangote refinery is increasing its international influence, with its aviation fuel now recommended for major airports like Heathrow in the UK. As the exclusive supplier of jet fuel to Nigerian airlines, Dangote’s fuel accounts for about two-thirds of Nigeria’s supply and nearly half of West Africa’s consumption. Consequently, Nigeria’s jet fuel imports have dropped significantly, from 13,000 barrels per day in 2023 to 5,000 barrels per day in 2024.