Table of Contents
Key Points
- Dangote is addressing supply challenges by building eight new crude storage tanks, boosting storage capacity by 41.67% to secure oil imports.
- The refinery’s crude storage capacity will reach 3.4 billion liters, with new tanks adding 6.3 million barrels to meet growing demand.
- Dangote plans to expand his industrial influence, with new refineries and cement production in Angola, strengthening his global energy sector presence.
Africa’s richest man, Aliko Dangote, is working to address supply challenges at his $20 billion Dangote Oil Refinery, which has been facing an insufficient crude oil supply from Nigeria’s state-owned Nigerian National Petroleum Company (NNPC) Limited. In response, Dangote Industries is building eight new crude storage tanks to secure a stable supply of imported oil.
Storage capacity boost to meet growing demand
The refinery, which boasts a refining capacity of 650,000 barrels per day, is set to increase its crude oil storage capacity by 41.67 percent, totaling 3.4 billion liters. The new tanks will hold an additional 6.3 million barrels of imported crude, about 1 billion liters, helping to meet the growing needs of the refinery. Four of the eight new tanks are already near completion.
“We are building these additional tanks to compensate for the insufficient local supply,” said Devakumar Edwin, vice president for oil and gas at Dangote Industries Ltd. “Importing crude from other countries instead of buying locally means that our crude stockpiles will have to be higher.”
Refinery exports and growing influence
Despite challenges with local crude supply, the Dangote Refinery began producing diesel and aviation fuel in early 2024, followed by petrol in September. The refinery's products are already being supplied to the domestic market and exported to countries including Cameroon, Angola, Ghana, and South Africa.
Dangote's ambition extends beyond refining, as he has revealed plans to expand his footprint in Angola with a new refinery and increased cement production, further solidifying his position as a key player in Africa’s industrial transformation. These moves align with Dangote’s broader goal to expand his influence in the global energy sector.
Infrastructure designed for global standards
Located on a Lagos peninsula, the Dangote Refinery is part of the Dangote Petrochemical Complex, which also includes one of the world’s largest fertilizer production facilities. The refinery’s capacity makes it the largest single-train refinery in the world.
Edwin stressed the refinery’s importance as a landmark project designed by Nigerians for a global market, underscoring it as a significant achievement for Dangote Industries.
