Dangote Refinery Affecting European PMS Market – OPEC

The Organisation of the Petroleum Exporting Countries (OPEC) has revealed that Nigeria’s Dangote Petroleum Refinery is significantly affecting Premium Motor Spirit (PMS) markets in Europe.

The refinery, with a capacity of 650,000 barrels per day, commenced operations in January 2024 and began producing PMS in September. Its output marks a shift for Nigeria, which had long depended on fuel imports to meet domestic demands.

OPEC’s latest report highlights that the refinery’s gasoline exports are reducing Europe-to-Nigeria petroleum shipments.

The report stated: “Nigeria’s continued gasoline production, coupled with exports to the international market, is easing Europe’s gasoline volumes, forcing adjustments in destination markets.”

OPEC further noted that these developments are likely to increase inventory levels and intensify bearish sentiments in the European gasoline market due to seasonal pressures.

Additionally, data revealed that Nigeria’s crude oil production rose to 1.507 million barrels per day in December 2024, reflecting a 12,000bpd increase from November.

Ranked above Europe’s largest refineries, the $20 billion Dangote Refinery boasts superior refining capacity, surpassing Shell’s Pernis refinery in the Netherlands, TotalEnergies Antwerp in Belgium, and others.