Nigeria’s 650,000 barrel-per-day Dangote refinery could see its gasoline unit shut for two to three months to undergo repairs, industry monitor IIR Energy told clients on Thursday, raising concerns over tighter supplies in the global gasoline market, Reuters reported.
The unit has been offline since around August 29 following catalyst leaks. While the refinery plans to attempt a restart of its 204,000 bpd Residue Fluidized Catalytic Cracking Unit on September 20, IIR Energy said major repairs and equipment replacements could extend the outage for months.
Reuters reported on Wednesday that the RFCCU was expected to remain shut for at least two weeks.
Dangote has not yet responded to requests for comment. One gasoline trader noted the market was already strong, saying, “This just adds fuel to the fire.”
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The disruption has already pushed gasoline margins higher. U.S. gasoline futures crack spreads have climbed nearly 13% this week to their highest level since August 19, while Northwest European gasoline profit margins surged about 23% to $19.31 as of Wednesday, their highest since late June, according to LSEG data.
Philip Jones-Lux, senior analyst at Sparta Commodities, said current and upcoming outages are sufficient to offset the seasonal slowdown in demand.
The Dangote refinery, which began processing crude in January 2024, has already reshaped trade flows by sharply cutting gasoline imports into Nigeria.
Exports from the EU and UK to Nigeria dropped from an average of about 200,000 bpd in 2024 to around 120,000 bpd in the first half of this year, Kpler data shows.
The refinery has also shipped two gasoline cargoes to the U.S. East Coast, expected to arrive in New York later this month, a milestone closely watched by industry observers assessing when the plant would produce fuel meeting U.S. standards.
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Image Credit: Business Insider Africa
