Dangote Refinery has strongly denied allegations that it exported off-specification diesel to European markets, following reports that several buyers in Europe were avoiding shipments from the Nigerian facility due to quality concerns.
Quality Concerns and Company Response
According to a report by Argus Media, multiple European and Nigerian market sources found the refinery's diesel unsuitable for winter conditions in northern Europe. The concerns centered around cloud point failures, higher-than-permitted sulphur levels, and an inability to meet premium German winter standards.
However, the company's spokesman, Anthony Chiejina, dismissed these suggestions as misleading. He emphasized that the refinery does not manufacture winter-grade diesel and has never offered such products to European buyers.
"Diesel supplied to Europe has seasonal specifications—winter, summer, spring, and autumn. We do not produce winter diesel; it is not part of our portfolio," Chiejina stated clearly.
Technical Specifications and Market Reaction
Market sources speaking to Argus revealed that European traders were reluctant to purchase Dangote's diesel because samples failed to meet winter requirements. A Nigerian source familiar with the refinery's operations confirmed that the issue was unrelated to price or arbitrage opportunities.
One European distillates trader who reviewed a diesel sample dated 16 November reported concerning findings:
- Cloud point of +8°C, significantly above Germany's winter requirement of -7°C
- Sulphur content of 36ppm, much higher than the 10ppm European standard
- Specific gravity of 0.8395 within Dangote's stated export range
- Cetane number of 57.5, above Europe's minimum requirement of 51
The trader noted that blending the diesel with jet fuel to improve its cold-weather properties was unlikely to succeed due to sulphur content limitations.
Market Shift and Future Plans
With Europe reducing interest in the refinery's output, West Africa has become the primary destination for Dangote's diesel and gasoil shipments. According to Kpler data:
- Nigeria has taken around 25,000 barrels per day
- Ghana follows with 14,000 barrels per day
- Togo accounts for 7,000 barrels per day
The region now accounts for 97 per cent of the refinery's total seaborne diesel and gasoil exports this year.
Even within Nigeria, some industrial buyers remain cautious. Traders indicate that buyers prefer diesel with a specific gravity of 0.8400 and above because it burns more slowly, while Dangote diesel typically ranges from 0.8300 or lower.
The refinery, which began operations late last year, has announced ambitious plans to ramp up its capacity to 1.4 million barrels per day by 2028. At that stage, Dangote says it will begin producing winter-grade diesel and upgrade its fuels to Euro VI standards, aligning fully with the highest global benchmarks.
