Eight tanks are set to be constructed at the Dangote Petroleum Refinery in Nigeria. The strategic move aim to address crude oil supply challenges by expanding its storage capacity and refining capabilities.
The tanks are set to boost crude oil storage by 6.29 million barrels (1 billion litres). This expansion will increase the refinery’s crude oil storage capacity by 41.67%, from 2.4 billion litres to 3.4 billion litres.
The refinery already operates 20 crude storage tanks, each with a capacity of 120 million litres. Refined product tanks have a total capacity of 2.34 billion litres. Diesel and aviation fuel production began in January 2024, followed by petrol in September 2024, with supplies to both domestic and export markets.
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Addressing oil challenge
Persistent low crude oil supply from the Nigerian National Petroleum Company Limited (NNPC) has forced the refinery to increase reliance on imported crude. Devakumar Edwin, Dangote Industries’ VP for oil and gas, cited “unreliable” local supplies as a primary driver of this shift.
Under President Bola Tinubu’s naira-for-crude policy initiated in August 2024, the NNPC supplies crude oil to local refineries in naira. The policy aimed to address crude shortages and reduce petroleum product prices.
Despite being Africa’s largest oil producer, Nigeria continues to contend with underinvestment, production outages, theft, and pipeline vandalism. These challenges have affected crude availability, prompting Dangote’s reliance on imports. The expansion of storage facilities positions the refinery to maintain consistent production despite supply uncertainties. With the refinery ramping up production, its petrol products are gaining traction in Nigeria, offering a potential boost to local fuel availability and stability.
