The much talked about Dangote crude oil refinery being built in Lagos is said to be a threat to European plants which Nigeria mostly import fuel from.
The Editorial Director, Strategic Oil Markets Development, S&P Global Platts, Andrew Bonnington, said at the S&P Global Platts Lagos Oil & Energy Forum on Thursday hinted that the start of operations at the Dangote refinery may likely lead to the closure of some European refineries.
In his words, “It is impossible for me to say exactly what the impact will be, but it is not a good thing for European refineries that Dangote refinery is being built.”
“In Africa, the Dangote refinery is a huge story; one of the biggest refineries in the world being built in Nigeria, likely to supply most of or all of Nigeria’s consumption. That clearly has an impact on European refineries, because they export to Nigeria” He added.
Europe is the biggest supplier of petroleum products to Nigeria, with about 75 percent of petrol consumed in the country imported from the continent, Bonnington says.
This is coming not long after the President, Dangote Industries Limited, Aliko Dangote, last week said that he had arranged more than $4.5bn in debt financing for his refinery project and aimed to start production in early 2020.