The Organisation of the Petroleum Exporting Countries (OPEC) has reported that Dangote's oil refinery in Nigeria is disrupting the European gasoline market, reducing imports and changing trade dynamics. The $20.5 billion refinery, owned by Africa's richest man, has surpassed the refining capacity of Europe's largest refineries and is expected to further impact the European gasoline market as it ramps up production.

The Dangote refinery, which commenced production in January after years of delays, has cut down Nigeria's imports of petroleum products from Europe. According to the OPEC report, the ongoing operational ramp-up efforts at the refinery will likely weigh further on the European gasoline market. This is because continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will free up gasoline volumes in international markets, calling for new destinations and flow adjustments for the extra volumes going forward.

The impact of the Dangote refinery is already being felt in Europe, with gasoline stockpiles at the Amsterdam-Rotterdam-Antwerp storage hub remaining strong, and the gasoline crack spread in Rotterdam against Brent scaling somewhat on robust exports. As the Atlantic Basin's gasoline balance extends due to winter-season demand-side pressures, gasoline inventory rises are anticipated to continue throughout the upcoming month.

Earlier projections for the Dangote refinery indicated that it would take in around 400,000 barrels of Nigerian crude daily over the next few months, shaking up Africa's oil trade. The refinery intended to take in 13 to 14 shipments from Nigeria's usual monthly program of about 50 cargoes. Experts revealed that the Dangote refinery might end the decades-long gasoline trade from Europe to Africa, which is valued at $17 billion per year.

In April, Bloomberg ranked the Dangote refinery above the ten largest oil refineries scattered across Europe. The refinery, with an installed capacity of 650,000 barrels per day, outperforms Europe's biggest refinery, the Pernis Refinery, with an installed capacity of 404,000 barrels per day. It also outperforms the GOI Energy ISAB Refinery in Italy, which has a refining capacity of 360,000 barrels per day.

The implications of the Dangote refinery's impact on the European gasoline market are significant. As Nigeria reduces its reliance on imports, the dynamics of the global oil trade are shifting. The refinery's ability to process 650,000 barrels per day makes it a major player in the global oil market, and its impact will be felt for years to come.

As the Dangote refinery continues to ramp up production, it will be interesting to see how the European gasoline market adapts to the changing landscape. One thing is certain, however - the Dangote refinery is a game-changer for Nigeria and the global oil industry.