Dangote Refinery set to meet West Africa and Central Africa’s fuel needs

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The Dangote Petroleum Refinery has the capacity to supply the diesel and aviation fuel needed in West Africa and Central African nations, according to S&P Global Commodity Insights. At a webinar organized by the Major Energies Marketers Association of Nigeria, Gary Clark, an official of S&P Global Commodity Insights, stated that the refinery has exported a large quantity of diesel and jet fuel to West and Central African countries.

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“You know, prior to the ramping up of supply at the Dangote refinery, West Africa was very much reliant on imports from Europe and elsewhere. But now, obviously, with the Dangote refinery coming online, we see a lot of gasoil or diesel and jet fuel exported from that refinery, meeting West African and Central African demands,” Clark said. “More than enough jet fuel has been exported to supply both the region and also more far-flung destinations as well.

Impact on Trade Flows

Clark noted that Dangote’s ramp-up has reshaped trade flows, retaining much gasoil in West Africa and exporting jet fuel internationally. “Dangote’s ramp-up has reshaped trade flows, retaining much gasoil in West Africa and exporting jet fuel internationally,” he said, while cautioning that outages and maintenance can quickly reintroduce volatility.

Lomé Port as a Major Route

The Lomé, Togo Port has become a major route for fuel importation into Africa. According to Mrs. Ogechi Nkwoji, Head of Economic Intelligence, Research and Regulation at MEMAN, Lomé is an indispensable offshore hub that evolved from onshore bottlenecks and declining refinery capacity. “Large cargoes are discharged into floating storage off Togo, from which traders lift into smaller vessels to transport to regional buyers, especially Nigerian marketers,” she explained.

Impact on European Markets

Matthew Tracey-Cook, a senior price reporter for EMEA Gasoline & West Africa Refined Products at S&P Global, noted that European crack spreads have been softer compared with the post-COVID and Russia-Ukraine periods due to weaker exports to West Africa. He highlighted how an outage at Dangote’s Fluid Catalytic Cracking unit in August caused a sharp rally in gasoline cracks, which jumped from about $13 per barrel to above $17 per barrel. “This shows how critical Dangote’s operations have become for the Atlantic basin,” he explained.

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