LAGOS, April 16 – The Dangote Petroleum Refinery is rapidly becoming a critical supplier of jet fuel to Europe, capitalizing on supply disruptions triggered by the Middle East conflict and boosting its profitability in the process, Bloomberg News reported on Thursday.
Owned by Aliko Dangote, the $20 billion facility reached full operational capacity just weeks before the crisis disrupted global oil flows. The 650,000-barrel-per-day plant is now leveraging its scale and cost advantages to expand exports into energy-starved markets.
Jet fuel shipments from the refinery to Europe surged to around 50,000 barrels per day in March, with total exports of the product reaching over 110,000 barrels per day in April. European prices have hit record highs, creating a lucrative opportunity for suppliers outside the disrupted Middle East corridors.
The refinery’s competitive edge is largely driven by its reliance on domestic crude, which accounts for nearly 70% of its feedstock. This significantly reduces exposure to rising freight costs linked to tensions around the Strait of Hormuz.
At full capacity, the facility can produce up to 150,000 barrels per day of jet fuel, positioning it as a strong alternative supplier as European refineries struggle with high input costs and constrained supply chains. Analysts estimate its refining margins exceed $30 per barrel, roughly double those of many European plants.
Beyond Europe, the refinery is also reshaping regional trade flows. Nigeria has transitioned from a net importer of refined fuels to an exporter, with shipments increasingly heading to African markets facing shortages. Recent gasoline exports have reached countries such as Mozambique, signaling a broader continental supply shift.
The development marks a significant turning point for Nigeria’s energy sector, strengthening its role as both a regional and global supplier of refined petroleum products at a time of heightened market volatility.
