Dangote Refinery CEO Pushes Efficiency-Driven Global Shift, Says Older Refineries Face Phased Exit Under Cleaner Fuel Era.
A sweeping transformation is underway in the global oil refining industry, with increasing pressure on operators of ageing facilities to either upgrade or exit the market as cleaner fuel standards and efficiency benchmarks reshape investment priorities.
The Managing Director and Chief Executive Officer of the Dangote Petroleum Refinery, David Bird, has argued that the future of refining is being defined by modern, highly automated systems capable of producing low-emission fuels, warning that outdated infrastructure is becoming economically and environmentally unsustainable.
Bird made the remarks in Lagos while speaking with journalists on the sidelines of the Nigerian Association of Energy Economics conference, where industry stakeholders examined energy transition trends, refining capacity expansion, and Africa’s evolving role in global energy security.
He noted that the sector is already shifting toward stricter fuel specifications such as Euro 5 and Euro 6 standards, which are influencing global investment flows and accelerating the retirement of inefficient refineries.
According to him, while older facilities have historically supported global fuel supply, the next phase of the industry will increasingly reward efficiency, scale, and cleaner production processes, while penalising assets unable to meet emerging environmental benchmarks.
Bird stressed that sustained reinvestment in the oil and gas value chain remains critical, particularly in adopting best-available technologies that improve energy efficiency and reduce emissions across refining operations.
He described modern facilities such as the Dangote refinery as emblematic of the industry’s direction, positioning them as models for what future refining systems are expected to look like in terms of automation, data integration, and operational efficiency.
Expressing confidence in the facility’s design and performance, he said the refinery stands among the most advanced in the world, adding that its output aligns with growing global demand for cleaner fuels.
“I’m incredibly proud of being part of the world’s youngest, most modern, most energy-efficient, most automated, most data-rich refinery,” he said.
He further argued that if the production of cleaner Euro 5 and Euro 6 fuels contributes to the gradual shutdown of older, smaller, and less efficient refineries, such a shift would ultimately benefit the environment by improving the overall efficiency of global refining operations.
Beyond environmental considerations, Bird emphasised that continued investment in modern refining infrastructure is essential for competitiveness, noting that technological upgrades are no longer optional but a necessity for long-term survival in the sector.
“So the continued reinvestment in the oil and gas value chain, using best available technology, and allowing energy efficiency improvements to be brought to bear, is an imperative,” he added.
Reaffirming the refinery’s operational strength, he disclosed that the plant is currently running at full capacity following maintenance activities earlier in the year, producing sufficient volumes of petrol, diesel, and jet fuel to meet domestic demand.
According to him, the facility is operating at 650,000 barrels per day and has been able to maintain uninterrupted supply, including through the festive period when fuel availability was sustained without scarcity or queues.
“And there was no fuel scarcity and no fuel queues during Christmas. But now we’re running at full capacity… more than meeting the country’s demands, not only of PMS but obviously of diesel and jet,” he said, adding that surplus output is being exported.
The refinery has reportedly begun shipping excess refined products to more than 11 African countries, reinforcing its growing regional footprint and aligning with its stated “Africa-first” supply strategy backed by billionaire industrialist Aliko Dangote.
Bird added that exports will continue to prioritise Nigeria’s domestic needs while supporting neighbouring markets across the continent.
On pricing and subsidy-related discussions, he noted that decisions on cushioning fuel costs remain within government policy frameworks, stressing that global economies are currently grappling with broader cost-of-living pressures beyond the energy sector.
The comments are expected to intensify ongoing debates within the global refining industry, particularly as operators of ageing facilities face mounting regulatory and market pressure to modernise or gradually phase out operations.
The remarks also come against the backdrop of earlier assertions by former President Olusegun Obasanjo questioning the viability of Nigeria’s long-idle state-owned refineries, as well as broader industry shifts following the commissioning of large-scale private refining capacity in Africa.