The Dangote Petroleum Refinery, one of the largest industrial projects in Africa, is making a significant move to expand its crude oil storage capacity.
The refinery is building eight new storage tanks, adding an impressive 1 billion litres to its capacity. This step shows the refinery’s commitment to ensuring a steady supply of crude oil, especially as local sources have proven unreliable.
Why the expansion matters
This $20 billion refinery in Lagos, Nigeria, has been a game-changer for the country’s energy sector. By constructing these additional tanks, the refinery’s storage capacity will jump by 41.67%, increasing from the current 2.4 billion litres to 3.4 billion litres.
This expansion enables the refinery to stockpile imported crude, reducing dependence on inconsistent supplies from the Nigerian National Petroleum Company Limited (NNPCL).
According to Devakumar Edwin, Vice President of oil and gas at Dangote Industries, the decision to import crude was driven by low local supply. “Importing crude from other countries instead of buying locally means that our crude stockpiles will have to be higher,” Edwin explained. He also noted that four of the eight new tanks are nearing completion.
Read also: Dangote Refinery seen fueling manufacturing growth in 2025
How it can address Nigeria’s energy challenges
Despite being Africa’s largest oil producer, Nigeria has struggled with production challenges, including pipeline vandalism and theft. These issues have disrupted the country’s oil supply, making reliable delivery a persistent problem.
The NNPCL’s focus on servicing loans and supplying its Warri and Port Harcourt refineries further limits the crude available for the Dangote Refinery.
This shortage has prompted the refinery to turn to international suppliers, ensuring uninterrupted operations. The additional tanks will provide much-needed flexibility to manage imports and maintain a steady flow of refined products for both local and international markets.
Its impact on Petroleum Product Supply
Since commencing operations, the Dangote Refinery has transformed Nigeria’s energy landscape. It began producing diesel and aviation fuel in early 2024, followed by petrol in September. Its refined products are distributed across Nigeria and exported to several countries, bolstering the country’s position in the global market.
The refinery currently has 20 crude tanks, each with a 120-million-litre capacity, and refined product tanks with a total capacity of 2.34 billion litres. This new expansion solidifies its role as a critical player in addressing Nigeria’s fuel needs.
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