Traders and shipping data have shown that Dangote oil refinery in Nigeria is ramping up gasoil exports to West Africa, capturing market share from European refiners.
Gatekeepers News reports that according to Reuters, the refinery is currently producing a lower grade of gasoil than anticipated as it awaits the restart of units necessary for producing cleaner fuels.
Consequently, the refinery is seeking buyers in neighbouring markets.
According to data from analytics firm, Kpler; Gasoil exports from the refinery reached nearly 100,000 barrels per day (bpd) in May. Almost all the exports were directed to other West African countries, with one shipment sent to Spain.
Preliminary data for June however shows a significant drop in gasoil volumes, though overall oil product exports, including fuel oil, naphtha, and jet fuel, remained relatively high at 225,000 bpd.
A European distillates trading source, Impacting European markets told Reuters that Dangote refinery has shifted the balance in West Africa.
According to Kpler data; EU and UK gasoil exports to West Africa reduced to a four-year low of 29,000 bpd in May, while Russian exports to the region dropped to an eight-month low of 87,000 bpd in the same month.
