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Dangote Refinery Operations Analysis

Comprehensive analysis of current refinery capacity, operational performance, and expansion opportunities for businesses seeking to understand market dynamics and trading potential.

Dangote Oil Refinery

Lagos, Nigeria • Largest Single-Train Refinery in the World

Nameplate Capacity

650,000 bbl/day

Expandable to 1.4 million bbl/day

Current Operation

60-65% Capacity

390,000 - 422,500 bbl/day (faulted operation)

Market Impact

Expansion will add +300k bbl/d gasoline, +150k bbl/d diesel, +140k bbl/d jet fuel to regional markets

Three-Scenario Operational Analysis

Comparative production output across baseline, faulted, and expanded capacity scenarios

A

Baseline

650,000

bbl/day nameplate

Total Output: ~86,000 t/d
Gasoline: 156k bbl/d
Diesel: 149.5k bbl/d
B

Faulted Operation

60-65%

390k - 422.5k bbl/day

Total Output: 52-56k t/d
Gasoline: 94-159k bbl/d
Diesel: 90-97k bbl/d
C

Expanded

1.4M

bbl/day (Kpler adjusted)

Total Output: ~182,000 t/d
Gasoline: 456k bbl/d
Diesel: 299.5k bbl/d

Detailed Product Slate Comparison

Product Baseline
(650k bbl/d)
60% Capacity
(390k bbl/d)
65% Capacity
(422.5k bbl/d)
Expanded
(1.4M bbl/d)
LPG 19,500 bbl/d
1,736 t/d
11,700 bbl/d
1,042 t/d
12,675 bbl/d
1,128 t/d
30,034 bbl/d
2,668 t/d
Naphtha 52,000 bbl/d
5,952 t/d
31,200 bbl/d
3,571 t/d
52,000 bbl/d
3,899 t/d
80,094 bbl/d
9,184 t/d
Gasoline 156,000 bbl/d
18,466 t/d
93,600 bbl/d
11,080 t/d
159,300 bbl/d
12,003 t/d
456,000 bbl/d
53,940 t/d
Jet / Kerosene 45,500 bbl/d
5,814 t/d
27,300 bbl/d
3,488 t/d
29,625 bbl/d
3,789 t/d
185,500 bbl/d
23,705 t/d
Diesel / Gas Oil 149,500 bbl/d
20,066 t/d
89,700 bbl/d
12,040 t/d
97,175 bbl/d
13,043 t/d
299,500 bbl/d
40,194 t/d
VGO 39,000 bbl/d
5,464 t/d
23,400 bbl/d
3,279 t/d
25,350 bbl/d
3,557 t/d
60,071 bbl/d
8,428 t/d
Fuel Oil 39,000 bbl/d
5,955 t/d
23,400 bbl/d
3,573 t/d
25,350 bbl/d
3,871 t/d
60,071 bbl/d
9,171 t/d
Bitumen / Heavy 65,000 bbl/d
10,442 t/d
39,000 bbl/d
6,265 t/d
41,125 bbl/d
6,784 t/d
100,118 bbl/d
16,019 t/d
Lubes & Other 84,500 bbl/d
12,090 t/d
50,700 bbl/d
7,254 t/d
54,925 bbl/d
7,858 t/d
130,611 bbl/d
18,618 t/d
TOTAL 650,000 bbl/d
~86,031 t/d
390,000 bbl/d
~51,619 t/d
422,500 bbl/d
~55,921 t/d
1,400,000 bbl/d
~181,928 t/d

View Complete Analysis Spreadsheet

Access the full Dangote Product Scenarios spreadsheet with detailed breakdowns across all scenarios, including low/mid/high diesel density calculations, product valuations, and market impact assessments.

Opens in Google Sheets • View-only access • Based on publicly available research data

Market Impact & Commercial Opportunities

Understanding the strategic implications of Dangote's expansion on regional and global petroleum markets

Kpler Expansion Increments

Additional market volumes when Dangote scales from 650k to 1.4M bbl/d

Gasoline Addition +300k

bbl/day additional gasoline supply to market (final: 456k bbl/d)

Diesel / Gas Oil Addition +150k

bbl/day additional diesel supply to market (final: 299.5k bbl/d)

Jet Fuel Addition +140k

bbl/day additional jet fuel supply to market (final: 185.5k bbl/d)

Insight: These incremental volumes represent the largest single-train refinery expansion in global markets, creating significant export and trading opportunities.

Current Faulted Operation

Capacity constraints limiting market impact until repairs complete

60% Scenario 390k

bbl/day throughput (51,619 t/d total output)

Gasoline: 93.6k bbl/d
Diesel: 89.7k bbl/d
65% Scenario 422.5k

bbl/day throughput (55,921 t/d total output)

Gasoline: 159.3k bbl/d
Diesel: 97.2k bbl/d

Current Status: Market impact is currently muted at 60-65% capacity. Early positioning ahead of fault repair and expansion offers strategic advantage.

Operational & Commercial Implications

Export Planning & Logistics

At 1.4M bbl/d, Dangote will create large, predictable export streams requiring strategic planning.

  • Early offtake agreements for gasoline (~54kt/d) and diesel (~40kt/d)
  • Shipping and terminal capacity booking for VLCC/AFRAMAX vessels
  • Pipeline/terminal and jetty infrastructure planning

Contracting & Pricing Strategy

Large incremental volumes will influence regional price dynamics significantly.

  • Indexed long-term sales contracts to avoid spot market flooding
  • Staggered shipment schedules for market stability
  • Regional pricing impact analysis for West Africa and Europe

Quality & Density Management

Precise specifications critical for shipping contracts and valuation.

  • Lab-measured density at 15°C for all shipping contracts
  • Diesel density range: SG 0.830-0.860 (low/mid/high scenarios)
  • Product quality certifications for international markets

Strategic Market Positioning

Early movers can secure favorable terms ahead of full capacity operations.

  • Position ahead of 60-65% capacity restoration to full baseline
  • Establish relationships before 1.4M expansion completion
  • Hedge against regional supply disruptions with guaranteed volumes

Technical Assumptions & Methodology

Baseline Product Slate (650k bbl/d)
  • • LPG: 3% (19,500 bbl/d)
  • • Naphtha: 8% (52,000 bbl/d)
  • • Gasoline: 24% (156,000 bbl/d)
  • • Jet/Kero: 7% (45,500 bbl/d)
  • • Diesel: 23% (149,500 bbl/d)
  • • VGO: 6% (39,000 bbl/d)
  • • Fuel Oil: 6% (39,000 bbl/d)
  • • Bitumen: 10% (65,000 bbl/d)
  • • Lubes/Other: 13% (84,500 bbl/d)
Densities (kg/m³ at 15°C)
  • • LPG: 560
  • • Naphtha: 720
  • • Gasoline: 745
  • • Jet/Kero: 803
  • • Diesel: 830 (low) / 845 (mid) / 860 (high)
  • • VGO: 880
  • • Fuel Oil: 960
  • • Bitumen: 1,010
  • • Lubes/Other: 900
Conversion & Calculations
  • • 1 bbl = 0.1589873 m³
  • • tonnes = bbl × 0.1589873 × density(kg/m³) ÷ 1000
  • Kpler Increments (1.4M):
    +300k bbl/d gasoline
    +150k bbl/d diesel
    +140k bbl/d jet fuel
Revenue Valuation Analysis

Diesel Revenue Value Capacity

Real-time spot market valuation of diesel/gas oil output across operational scenarios, based on physical cargo pricing rather than futures contracts

Data as of: January 23, 2025
Indicative analysis • Subject to market changes

Pricing Basis (Spot Market)

Physical cargo pricing for actual refinery cash-flow capacity — spot market assessments reflect real transaction values, not paper contracts.

Spot Diesel/LSGO Price

$683

per metric tonne

Export Premium

+$20

per metric tonne

Effective Realised Price

$703

per metric tonne

Why Spot vs Futures? Refineries sell physical barrels, not paper contracts. Spot prices (Platts, Argus) reflect actual cargo trade values used for invoicing, while ICE futures are financial hedging instruments. For day-to-day value capacity analysis, spot is the correct reference.

Important Disclosure

Data Source & Limitations: This analysis is based on publicly available research data including industry reports, market assessments, and publicly disclosed refinery specifications. This is not insider information and does not constitute privileged or confidential data.

Indicative Nature: All valuations shown are indicative estimates for illustrative and analytical purposes. Actual refinery performance, product yields, and market realizations may vary significantly based on crude slate, operational efficiency, maintenance schedules, and market conditions.

Subject to Change: Spot market prices fluctuate daily. The pricing used (dated January 23, 2025) represents a point-in-time snapshot. Do not rely on these figures for investment decisions without current market data and professional advice.

Reference Only: This report provides a good reference framework for understanding refinery economics and market scale but should be supplemented with real-time data, proprietary analysis, and professional due diligence for commercial decisions.

60% Capacity (Faulted)

390,000 bbl/d

Diesel Output (Mid Density)

12,040 MT/day

Daily Diesel Revenue

$8.46M

$8,464,120 per day

Monthly

~$254M

Annual

~$3.09B

65% Capacity (Faulted)

422,500 bbl/d

Diesel Output (Mid Density)

13,043 MT/day

Daily Diesel Revenue

$9.17M

$9,169,229 per day

Monthly

~$275M

Annual

~$3.35B

100% Baseline Capacity

650,000 bbl/d

Diesel Output (Mid Density)

20,066 MT/day

Daily Diesel Revenue

$14.11M

$14,106,398 per day

Monthly

~$423M

Annual

~$5.15B

EXPANDED CAPACITY

1.4M Expanded Capacity

1,400,000 bbl/d

Diesel Output (Mid Density)

40,194 MT/day

+20,128 MT/day vs baseline

Daily Diesel Revenue

$28.26M

$28,256,382 per day

Monthly

~$848M

Annual

~$10.3B

Comparative Daily Revenue Capacity (Diesel Only)

60% Capacity $8.46M/day
30%
65% Capacity $9.17M/day
32.5%
100% Baseline (650k bbl/d) $14.11M/day
50%
1.4M Expanded Capacity $28.26M/day
100% (Target)

Price Sensitivity Analysis

Impact of ±$10/MT spot price movement on daily diesel revenue across all scenarios

Scenario MT/day @ $693/MT
(+$10)
@ $703/MT
(Current)
@ $713/MT
(+$10)
60% Capacity 12,040 $8.34M $8.46M $8.58M
65% Capacity 13,043 $9.04M $9.17M $9.30M
650k Baseline 20,066 $13.91M $14.11M $14.31M
1.4M Expanded 40,194 $27.85M $28.26M $28.66M

Key Trading Insight

Every $10/MT movement in spot diesel price changes daily value by:

  • ±$120,400/day @ 60% capacity
  • ±$130,430/day @ 65% capacity
  • ±$200,660/day @ 650k baseline
  • ±$401,940/day @ 1.4M expanded

At 1.4M capacity, this sensitivity scales to:

  • ±$12M/month per $10/MT
  • ±$147M/year per $10/MT
  • ±$735M/year per $50/MT

This underscores why spot index selection, contract timing, and hedging strategies are critical at Dangote scale.

Strategic Takeaways for Market Participants

Current Opportunity Window

At 60-65% capacity, market impact is muted (~$8.5-9.2M/day diesel revenue). Early positioning now — before fault repair restores baseline — offers strategic advantage and favorable contract terms.

Baseline Restoration Impact

Restoring to 650k bbl/d increases diesel revenue to $14.1M/day (~$423M/month). Securing offtake agreements ahead of this restoration locks in volume commitments before competition intensifies.

1.4M Expansion Scale

At full expansion, diesel alone generates $28.3M/day (~$10.3B/year). This represents the largest single-train refinery revenue stream globally — creating unprecedented regional export opportunities.

Note: Diesel figures shown are mid-density (SG 0.845). This analysis excludes gasoline, jet fuel, LPG, and other products — total refinery revenue capacity is materially higher.

NEW ANALYSIS REPORT

LSGO Diesel 50ppm ROI Analysis

Complete profitability breakdown for 20,000 MT diesel distribution across West Africa — featuring wholesale & pump pricing for Lome, Ghana, Liberia, Gambia, and Chad with up to 108% ROI potential.

23.7M
Litres Volume
$16.9M
Investment
5
Target Markets
92%
Avg. ROI
Complete Revenue Analysis

Total Refinery Revenue Capacity

Combined valuation including diesel, gasoline (PMS), and jet fuel/kerosene — the three highest-value transportation fuel products

Pricing Date: January 23, 2025

Gasoline (PMS)

Spot Price (NYMEX RBOB equiv.)

$745

per metric tonne

Export Premium

+$25/MT

Effective Price

$770/MT

Diesel / LSGO

Spot Price (ULSD equiv.)

$683

per metric tonne

Export Premium

+$20/MT

Effective Price

$703/MT

Jet Fuel

Spot Price (Jet A1 equiv.)

$725

per metric tonne

Export Premium

+$22/MT

Effective Price

$747/MT

Daily Revenue Capacity by Product (All Scenarios)

Transportation fuels only — excludes LPG, naphtha, VGO, fuel oil, bitumen, and lubes

Scenario Gasoline
@ $770/MT
Diesel
@ $703/MT
Jet Fuel
@ $747/MT
TOTAL
per Day
60% Capacity
390,000 bbl/d
11,080 MT/d
$8.53M
12,040 MT/d
$8.46M
3,488 MT/d
$2.61M
$19.60M
~$588M/month
65% Capacity
422,500 bbl/d
12,003 MT/d
$9.24M
13,043 MT/d
$9.17M
3,789 MT/d
$2.83M
$21.24M
~$637M/month
650k Baseline
650,000 bbl/d
18,466 MT/d
$14.22M
20,066 MT/d
$14.11M
5,814 MT/d
$4.34M
$32.67M
~$980M/month
1.4M Expanded
1,400,000 bbl/d
53,940 MT/d
$41.53M
40,194 MT/d
$28.26M
23,705 MT/d
$17.71M
$87.50M
~$2.63B/month
~$31.9B/year

Baseline to Expanded Growth

Scaling from 650k to 1.4M bbl/d increases daily transportation fuel revenue by:

+$54.83M/day

That's an additional $1.64B/month or $20B/year from just these three products.

Products Not Included

Total refinery revenue is materially higher — this analysis excludes:

  • • LPG (Liquefied Petroleum Gas)
  • • Naphtha (petrochemical feedstock)
  • • VGO (Vacuum Gas Oil)
  • • Fuel Oil & Bitumen
  • • Lubricants & Specialty Products

Annual Revenue Potential (Transportation Fuels Only)

60% Capacity

$7.15B

per year

65% Capacity

$7.75B

per year

650k Baseline

$11.92B

per year

1.4M Expanded

$31.9B

per year

At full 1.4M bbl/d expansion, these three products alone generate nearly $32 billion annually — making Dangote one of the world's most valuable single-site refineries.

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