The Dangote Petroleum Refinery is increasing its crude oil storage capacity by 1 billion litres, equivalent to approximately 6.29 million barrelsThis expansion is driven by the need to stockpile imported crude oil due to inconsistent local supplyThe refinery is ramping up production, with its petrol becoming increasingly popular among Nigerian vehicle owners and other users
Henzodaily.ng journalist Victor Enengedi has over a decade’s experience covering Energy, MSMEs, Technology and the Stock Market.
The Dangote Petroleum Refinery is constructing eight additional tanks to enhance its capacity for storing imported crude oil.
This expansion is expected to increase the refinery’s storage volume by 6.29 million barrels, equivalent to 1 billion litres.
Dangote Refinery expands crude storage with 8 new tanks amid local supply challenges
Source: UGC
According to Africa Report, the $20 billion facility aims to stockpile imported crude oil due to challenges with the reliability of local supplies.
Refinery officials have attributed the increased reliance on imports to insufficient crude deliveries from the Nigerian National Petroleum Company Limited (NNPCL).
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With the new tanks, the refinery’s crude storage capacity will grow by 41.67%, reaching 3.4 billion litres.
Devakumar Edwin, the Vice President overseeing oil and gas operations at Dangote Industries, reportedly stated:
“Importing crude from other countries instead of buying locally means that our crude stockpiles will have to be higher. So we have started building eight additional crude tanks to hold a billion litres, over and above our original storage capacity. Four of them are nearing completion.”
Nigeria, Africa’s largest oil producer, relied on fuel imports until last year. However, the situation changed with the commencement of operations at the Dangote Refinery.
The refinery presently operates 20 crude storage tanks, each with a capacity of 120 million litres, amounting to a total of 2.4 billion litres. Its tanks for refined products collectively hold 2.34 billion litres.
Dangote Refinery commenced the production of diesel and aviation fuel in January 2024, followed by petrol in September, supplying both the local market and various international destinations.
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Currently, the NNPC’s refineries in Warri and Port Harcourt are back in operation, meaning the company must allocate crude oil to these facilities in addition to the share designated for loan repayments.
Meanwhile, the Dangote Refinery is scaling up production, with its petrol gaining increasing popularity among Nigerian vehicle owners and other petrol consumers.
Fuel prices to crash in 2025
In related news, Henzodaily.ng reported that petroleum product marketers in Nigeria have projected a significant reduction in petrol prices by 2025 to as low as N500 per litre.
The oil marketers insist that the resumption of operations of the Port Harcourt and Warri refineries will drive this anticipated crash in price
They highlighted that a steady supply of petroleum products would encourage competition, leading to further price reductions.
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Source: Henzodaily.ng