S&P Global Energy Establishes Abuja Office for Pricing Hub

S&P Global Energy officially opened its office in Abuja at the World Trade Centre on Thursday, aiming to deepen its engagement with Nigeria and support the establishment of petroleum pricing benchmarks for the West African market. Joel Hanley, Executive Director of Strategy and Benchmarks at S&P Global Energy, stated that West Africa has the potential to become a major petroleum pricing hub, particularly due to the influence of the Dangote refinery on the regional market structure.

Historically, petroleum products in West Africa have been priced against European assessments, which do not accurately reflect local market conditions. Hanley mentioned that S&P Global Energy assesses various petroleum products and crude oil from Nigeria, Angola, Côte d’Ivoire, Chad, and other markets, with their pricing assessments being crucial for commercial contracts and investment decisions.

He also noted a prevailing sentiment against the return of fuel subsidies among trading community participants, as it could hinder the development of a free market in the region. Matthew Tracy Cook, Senior Reporter at S&P Global Energy, echoed Hanley’s sentiments regarding the changing dynamics of the West African petroleum market.