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Market Chatter: Dangote CEO Warns Refinery Damage Could Keep Fuel Supplies Tight Beyond US-Iran War

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Fuel shortages may last well beyond the US-Iran war as damaged refineries limit supplies and countries work to rebuild fuel stocks, Reuters reported Tuesday, citing Dangote's chief executive officer David Bird.

The market entered the Iran war with refineries already running at high utilization rates, while delayed maintenance and damage to Middle East plants have further strained supplies, Bird said, according to the report.

Dangote's refinery is operating at full capacity of 700,000 barrels per day and plans to double output to 1.4 million b/d by 2029 through a $14.3 billion expansion that will help replace imports of some petrochemical products and produce more diesel grades, Bird said.

The refinery's IPO will run from Sept. 14 to Oct. 13 and aims to raise about 2.15 trillion naira ($1.63 billion), mainly from retail investors. Dangote Refinery did not immediately reply to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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