Nigeria’s Dangote Oil Refinery, Africa’s largest, is on the brink of producing significant volumes of gasoline, a landmark moment with the potential to transform the global market for the fuel. Located near Lagos, the refinery will have the capacity to process 650,000 barrels of oil daily, converting over half into gasoline once fully operational.
This development comes as Nigeria’s state oil company, the country’s primary fuel importer, struggles with supply issues due to debt and rising prices. The refinery’s production is expected to significantly impact regional and global fuel trade, as Nigeria currently imports nearly 250,000 barrels of gasoline daily, primarily from Europe.
Key to the refinery’s gasoline production is a reformer unit, which has already begun operating, with full gasoline output expected by the end of the week. At peak capacity, the plant could produce around 330,000 barrels of gasoline daily, accounting for over 1% of global road fuel demand. However, initial production is forecasted to be around 90,000 barrels per day in the fourth quarter, potentially increasing to 250,000 barrels by mid-next year as additional units are brought online.
The refinery’s launch follows years of delays, with its owner, Aliko Dangote, indicating in July that gasoline production was targeted to start in August. A Dangote spokesperson confirmed that the refinery is on track with its production goals.
