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Dangote Refinery consumed 13% of Nigeria’s crude exports in 2024.
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The development reduced Nigeria’s exports to Europe, with the continent adding 162,000 barrels per day from Guyana.
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New refining capacity in Bahrain, Oman, Iraq, and Mexico is expected to soak up oil production in those regions.
Dangote Refinery’s domestic supply consumption has increased Nigeria’s domestic share of oil exports from 2% in 2023 to 13% in 2024, according to a report by Kpler.
This development has reduced Nigeria’s exports to Europe, with the continent adding 162,000 barrels per day from Guyana and 60,000 barrels per day from the US.
Reuters reported that Nigeria also imported 47,000 barrels per day of United States’ West Texas Intermediate, an unusual move for a major net exporter.
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The report stated, “This has had a ripple effect: With increased Canadian crude flowing to the U.S. West Coast, refineries in the region bought less Saudi Arabian and Latin American crude, while direct shipments from Canada to Asian countries have cut re-exports from the U.S. Gulf Coast.”
READ ALSO: Dangote $750m Offer: How Obasanjo’s Refinery Privatisation Plan Was Scuttled
The report added that Europe’s refiners initially reduced Russian imports and increased both US and Middle Eastern oil purchases after Russia invaded Ukraine.
Attacks on ships in the Red Sea following Israel’s war on Gaza pushed up the cost of shipping from the Middle East, prompting refiners to step up imports from the US and Guyana to record highs.
Dangote, NNPC Set to Crash Prices Further as Warri Refinery Begins Operation
The Warri Refining and Petrochemicals Company has begun operations, setting the stage for a price war between Dangote Refinery and the Nigerian National Petroleum Company Limited.
According to the Group Chief Executive Officer of the Nigerian National Petroleum Company, Mele Kyari, the Warri Refinery is currently operating at 60% capacity and will produce diesel, kerosene, and naphtha.
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