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 boosts storage capacity

According to Africa Report, the 650,000 barrels per day (bpd) facility worth $20 billion 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).

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.”

Following several months of disruptions in crude supply, the company had hinted at plans to launch production at its upstream projects in Oil Mining Leases 71 and 72 in the Niger Delta, initially producing around 20,000 barrels per day.

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.

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.