Domestic refining changing West Africa’s fuel supply – Marketers

The Major Energies Marketers Association of Nigeria (MEMAN) has described the rising domestic refining capacity as a game-changer which is changing the fuel supply landscape in Africa. It specifically made a reference to the 650,000-barrel Dangote Petrochemical Refinery and the emerging Lome Hub as reshaping West Africa’s fuel market. This emerged yesterday when MEMAN hosted […]

The Major Energies Marketers Association of Nigeria (MEMAN) has described the rising domestic refining capacity as a game-changer which is changing the fuel supply landscape in Africa.

It specifically made a reference to the 650,000-barrel Dangote Petrochemical Refinery and the emerging Lome Hub as reshaping West Africa’s fuel market.

This emerged yesterday when MEMAN hosted its monthly webinar in partnership with S&P Global Commodity Insights (Platts), to examine how global geopolitics, regional refining capacity, and evolving trade flows are transforming West Africa’s refined products market.

The session, held via Zoom with the theme “Market Fundamentals and Geopolitical Drivers”, brought together industry experts to discuss gasoline and middle distillates pricing dynamics, the strategic role of the Lomé offshore hub, and the implications of the newly commissioned Dangote refinery on regional trade patterns.

The webinar featured presentations by Mr. Gary Clark, Associate Editorial Director for EMEA Clean Refined Products at S&P Global; Mrs. Ogechi Nkwoji, Head of Economic Intelligence Research & Regulation at MEMAN; and Mr. Matthew Tracey-Cook, Senior Price Reporter at S&P Global, with Mrs. Vanessa Durojaiye, MEMAN Industry Analyst, moderating the session.

MEMAN Chairman, Mr. Huub Stokman, described the forum as timely, following Nigeria’s recent transition to full fuel price deregulation.

 

He stressed that rising domestic refining capacity was changing the supply landscape and highlighted MEMAN’s commitment to market transparency and stakeholder engagement.

 

S&P Global’s Gary Clark announced new Platts price assessments for West Africa, including low-sulphur diesel Free on Board (FOB) West Africa and Ship-to-Ship (STS) Lomé assessments, reflecting the region’s evolving trading dynamics. He noted that Dangote’s refinery had reshaped regional flows by retaining more gasoil within West Africa while exporting jet fuel internationally.

 

However, Mr. Clark cautioned that refinery outages, such as the recent Fluid Catalytic Cracking (FCC) unit shutdown at Dangote, could quickly reintroduce import needs and market volatility.

 

Mrs. Ogechi Nkwoji explained that the Lomé offshore hub emerged as a pragmatic response to port bottlenecks and declining domestic refinery performance.

 

She highlighted Lomé’s advantages — including deepwater berths, secure trading conditions, flexible lot sizes, same-day transactions, and regulatory clarity — which have made it a key reference point for price discovery and coastal distribution in West Africa.

 

Presenting on gasoline dynamics, Mr. Matthew Tracey-Cook said European gasoline markets had experienced reduced exports to West Africa due to increased local production from the Dangote refinery.

 

He noted that gasoline crack spreads, which measure refining margins, rallied sharply in August after the Dangote FCC outage, jumping from around $13 to over $17 per barrel, underscoring the refinery’s growing influence on Atlantic Basin product balances.