Nigeria’s newly operational Dangote oil refinery is making waves in the oil industry, rapidly increasing its gasoil exports to West Africa and capturing significant market share from European refiners.

According to traders and shipping data, this $20 billion refinery is already altering the landscape of oil exports in the region.

Despite currently producing a lower grade of gasoil than anticipated, due to pending restarts of key units needed for cleaner fuel production, the refinery has been actively seeking buyers in neighboring markets.

In May, Dangote’s gasoil exports soared to nearly 100,000 barrels per day (bpd), almost doubling the levels recorded in April, as per data from analytics firm Kpler.

The majority of these exports were directed to West African countries, with one shipment reaching Spain.

However, preliminary data for June shows a significant decline in gasoil volumes. Despite this, overall oil product exports, including fuel oil, naphtha, and jet fuel, remained robust at 225,000 bpd.

The rise of Dangote’s refinery has significantly impacted European markets. A European distillates trading source told Reuters, “The refinery has shifted the balance in West Africa.”

This shift is reflected in Kpler data, which shows that EU and UK gasoil exports to West Africa fell to a four-year low of 29,000 bpd in May.

Russian exports to the region also dropped to an eight-month low of 87,000 bpd in the same month.

In Nigeria, Dangote has been selling some high-sulphur gasoil, leading to disputes with local fuel retailers over responsibility for distributing the dirtier fuel.

The Petroleum Industry Bill passed in 2021 mandates a sulphur content of 50 parts per million (ppm) to align with sub-regional ECOWAS standards.

However, the regulator allowed the sale of gasoil with sulphur content above 200 ppm locally from the beginning of the year until June, giving local refineries and importers more time to comply with the new standard.

As European countries tighten regulations on high-sulphur gasoil exports, cargoes from the Dangote refinery have found a market in regions with more lenient motor fuel standards.

This shift is crucial as European refiners face increasing constraints, while West African countries continue to demand more fuel.

Earlier in May, Aliko Dangote, the Chairman of the Dangote refinery, stated that once fully operational, the refinery would supply products to West and Central African countries due to its capacity being too large for Nigeria alone.

This expansion underscores the refinery’s potential to reduce the $17 billion in oil imports into the continent and could even lead to the closure of some European refineries.

The refinery’s impact is evident with West Africa becoming the largest regional recipient of Europe’s gasoline exports in 2023, receiving roughly one-third of the continent’s average exports, which totaled 1.33 million barrels per day (bpd).

The Dangote refinery’s rapid ascent and substantial increase in gasoil exports mark a significant shift in the oil export dynamics of West Africa, promising to reshape the region’s energy landscape for years to come.

Ardova Plc, a leading indigenous energy company, and global lubricants giant Shell International have joined forces to launch the inaugural “Power Conference.”

The event, themed “Powering Nigeria’s Industries – Enhancing Productivity and Competitiveness,” was held in Lagos and drew significant attention from key stakeholders across the energy sector.

The conference stems from a strategic partnership between Ardova Plc and Shell International, highlighting their joint commitment to advancing Nigeria’s energy sector and fostering economic development.

The collaboration aims to create a platform for discourse on innovative energy solutions and collaborative approaches to drive industrialization and sustainable growth in the country.

In his opening remarks, Abdulwasiu Sowami, Group Executive Chairman of Ardova Plc, said its important to address the nation’s energy challenges through collective efforts.

“The Shell Power Conference serves as a nexus for experts and stakeholders to readdress the pressing challenges facing the Nigerian power sector.

“It underscores the critical need for collaborative approaches to drive industrialization for growth and development.

“At Ardova Plc, our vision is to promote power as a national aspiration by meticulously designing and recognizing key opportunities to provide adequate results,” Sowami stated.

Moshood Olajide, Managing Director at Ardova, reiterated the company’s commitment to fostering innovation and sustainability within the energy sector.

“The Shell Power Conference provides an invaluable platform for collaboration and knowledge-sharing, which is essential for driving progress in our industry. We are excited to participate in discussions that will shape the future of energy and look forward to the opportunities that arise from this esteemed gathering,” Olajide said.

The conference also featured discussions on initiatives and projects aimed at transitioning Nigeria towards a sustainable energy future, aligning with global efforts to combat climate change and reduce carbon emissions.

Keynote speakers and panelists explored innovative solutions and technologies that can enhance productivity and competitiveness in Nigeria’s business landscape.

Samir Mahgoub, Regional Sales Manager for Africa and European markets at Shell International, expressed enthusiasm about the partnership with Ardova.

“We are excited to collaborate with Ardova at the Shell Power Conference in our bid to advance sustainable energy solutions across Nigeria and the West African market. This conference is an opportunity to exchange ideas and explore innovations that will drive energy transition,” Mahgoub noted.

One of the highlighted innovations at the conference was the Shell Lubricant Solution, which utilizes proprietary Gas-to-Liquids (GTL) technology to convert natural gas into high-quality base oils for lubricants.

These GTL-based lubricants are designed to offer greater reliability and superior performance, particularly for the power sector’s transmission and distribution operations.

At the conclusion of the event, attendees expressed optimism about the future of Nigeria’s energy sector and commended Ardova and Shell for their proactive efforts in addressing energy challenges.

The “Power Conference” is expected to be an annual event, serving as a catalyst for ongoing dialogue and collaboration among industry stakeholders to drive sustainable growth and development in Nigeria’s energy landscape.

A fire outbreak occurred on Wednesday at the Dangote Petroleum Refinery in the Lekki Free Zone, Lagos.

The incident, which took place at the refinery’s effluent treatment plant (ETP), was quickly contained without causing any injuries or significant damage.

In an official statement sent to the media, Anthony Chiejina, Chief Corporate Communications Officer of Dangote Group, assured the public that the situation is under control and there is no cause for alarm.

“We have swiftly contained a minor fire incident at our effluent treatment plant (ETP) today, Wednesday, 26th of June,” the statement read.

“There is no cause for alarm as the refinery is operating normally, and there are no recorded injuries or bodily harm to any of our staff on duty.”

The rapid response by the refinery’s emergency team ensured that the fire did not spread, and operations at the refinery were not disrupted.

The Dangote Petroleum Refinery, a major project of the Dangote Group, is crucial for Nigeria’s oil industry, aiming to reduce the country’s dependence on imported fuel and enhance its refining capacity.

The swift containment of the fire reassures stakeholders and the public of the refinery’s commitment to safety and operational excellence.