-
Nigeria’s Dangote Refinery petrol unit faces an extended shutdown following catalyst leaks.
-
Global fuel markets react as supply constraints push gasoline margins higher.
-
Repairs and equipment replacements could delay resumption well beyond the initial September 20 forecast.
Nigeria’s Dangote Refinery, the continent’s largest single-site oil refinery, may have its petrol-producing unit offline for up to three months, according to industry monitor IIR Energy.
The Residue Fluidized Catalytic Cracking Unit (RFCCU), processing 204,000 barrels per day, has been shut since August 29 due to catalyst leaks.
The unit was initially scheduled to restart on September 20, but extensive repairs and equipment replacements could prolong the outage.
The development comes as global fuel markets experience tightening supply. U.S. gasoline futures crack spreads surged nearly 13% this week, reaching the highest levels since August 19. In Northwest Europe, gasoline profit margins climbed roughly 23% to $19.31 per barrel, their strongest level since late June, according to LSEG data.
“One gasoline trader noted that the outage adds pressure to an already strong market. ‘This just adds fuel to the fire,’ the trader said.”
Philip Jones-Lux, senior analyst at Sparta Commodities, said the supply concerns, driven by ongoing and upcoming outages, are strong enough to counteract what would normally be a seasonal decline in demand.
READ ALSO: Dangote Denies Ownership Of Truck Involved In Enugu Accident
Since commencing crude processing in January 2024, the 650,000-barrel-per-day refinery has reshaped global fuel flows. Kpler data shows exports of gasoline from the EU and UK to Nigeria dropped from around 200,000 barrels per day in 2024 to roughly 120,000 barrels per day in the first half of 2025.
The refinery has also reached a milestone by shipping two gasoline cargoes to the U.S. East Coast, with arrival in New York expected later this month.
