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The Dangote Petroleum Refinery, a $20-billion facility owned by Africa’s richest man, Aliko Dangote, has temporarily shut down its gasoline unit after technical issues, with repairs expected to take at least two weeks, according to industry sources.
Since opening last year, the 650,000-barrel-per-day refinery has already begun reshaping the flow of crude and fuel, sending products to markets as far as the United States. Its 204,000-barrel-per-day Residue Fluidized Catalytic Cracking Unit (RFCCU) was taken offline around Aug. 29 due to catalyst leaks and related faults.
Its first gasoline cargoes are scheduled to reach New York later this month, according to ship-tracking data from Kpler. The refinery has faced challenges along the way; the RFCCU had previously operated at reduced rates after setbacks in May, highlighting the complexities of running a project of this scale.
Impact on gasoline markets and exports
The recent shutdown has tightened gasoline supplies in the Atlantic Basin, pushing profit margins for U.S. refiners higher even after the summer driving season. On Wednesday, the U.S. gasoline crack spread — the difference between gasoline and crude prices — climbed nearly 3 percent to its highest since August 19, following an 8 percent increase the day before.
Since mid-year, the refinery has been exporting fuel to the Middle East and Asia, showing its ability to compete well beyond African markets. Traders say commodity firm Vitol may have chartered the Gemini Pearl to deliver the refinery’s first U.S. gasoline shipment, though this has not been confirmed.
The timing comes as Saudi and Kuwaiti refineries deal with outages and India’s Nayara Energy cuts supply due to European sanctions, creating new opportunities for Nigerian exports.
Dangote’s energy focus
The refinery reflects Dangote’s growing focus on oil refining and fertilizers. Having recently stepped down as chairman of Dangote Cement Plc, he has described the project as a way to reduce Africa’s dependence on imported fuel.
For Nigeria, the stakes are high. Despite being Africa’s top crude producer, the country has historically relied on imported gasoline to meet domestic demand. A fully operational Dangote refinery offers a chance to meet local needs while also entering global markets.
With a net worth of $28.7 billion, Dangote has called the refinery central to Africa’s energy future. Built along the Atlantic coast, the facility allows Nigeria to access both eastern and western fuel markets. While the first U.S. shipment won’t immediately reshape global trade, it establishes a new Atlantic supply route — one that did not exist before.
