Dangote Refinery Petrol Unit Faces Extended Shutdown Amid Catalyst Leak
By NaijaEnquirer Staff
The petrol unit of Nigeria’s 650,000 barrels-per-day Dangote Refinery may remain offline for up to three months following a major technical setback, industry monitor IIR Energy has warned. The disruption, linked to catalyst leaks, threatens to tighten global petrol markets already under strain.
According to Reuters, the affected unit—the 204,000 barrels-per-day Residue Fluidized Catalytic Cracking Unit (RFCCU)—has been out of operation since August 29. While efforts are underway to restart it by September 20, IIR Energy reports that full repairs and equipment replacements could delay operations for months.
Reuters initially reported a minimum two-week shutdown, but market sources now anticipate prolonged disruptions. The refinery has not issued an official statement in response.
Traders said the outage is likely to further strain the already tight petrol market. “This just adds fuel to the fire,” one petroleum products trader remarked.
Global markets are already reacting: U.S. petrol futures crack spreads have climbed nearly 13% this week, their highest since August 19, while Northwest European gasoline profit margins surged 23% to $19.31—the highest since late June, according to LSEG data.
Analysts suggest that existing supply constraints, along with upcoming outages, will outweigh seasonal demand declines. Philip Jones-Lux, senior analyst at Sparta Commodities, noted that supply tightness is now the dominant market driver.
The Dangote Refinery, which began processing crude in January 2024, has already reshaped global trade flows. EU and UK petrol exports to Nigeria dropped from around 200,000 bpd in 2024 to 120,000 bpd in the first half of 2025, according to Kpler. Recently, the refinery shipped two petrol cargoes to the U.S. East Coast, marking its first deliveries to meet American standards.
Meanwhile, global oil prices eased on Thursday amid a surprise build in U.S. crude inventories and expectations that OPEC+ may boost production targets. Brent crude settled at $66.95 per barrel, down 1%, while U.S. West Texas Intermediate fell 0.8% to $63.48.
The U.S. Energy Information Administration (EIA) reported a 2.4 million barrel crude stock build for the week ending August 29, as refineries entered seasonal maintenance. Sources told Reuters that OPEC+ will consider raising production in October, a move analysts say could signal a shift towards regaining market share over price support.
