The crude oil refinery being built in Lagos by Dangote Industries Limited is a threat to refineries in Europe, on which Nigeria relies mostly for fuel imports, a global provider of energy and commodities information has said.
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 that the start of operations at the Dangote refinery would likely lead to the closure of some European refineries.
He said on the sidelines of the event, “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.”
“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,” he added.
According to Bonnington, Europe is the biggest supplier of petroleum products to Nigeria, with about 75% of petrol consumed in the country imported from the continent.