Dangote Petroleum Refinery is increasing its crude oil storage capacity by constructing eight additional tanks, boosting storage by 6.29 million barrels, equivalent to 1 billion liters, according to Africa Report.
The $20 billion refinery is stockpiling imported crude oil due to the unreliability of local supplies. Officials from the refinery emphasized that inadequate crude deliveries from the Nigerian National Petroleum Corporation (NNPC) have necessitated a greater reliance on imports.
The addition of eight tanks will increase the refinery’s crude storage capacity by 41.67%, bringing the total to 3.4 billion liters.
Currently, the refinery operates 20 crude storage tanks, each capable of holding 120 million liters, totaling 2.4 billion liters. It also has tanks for refined products with a capacity of 2.34 billion liters.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, explained the strategic importance of larger stockpiles, stating:
“Importing crude instead of sourcing locally requires us to maintain substantial reserves. Construction of the new tanks is progressing well, with four already nearing completion.”
Although Nigeria is Africa’s largest crude oil producer, its domestic fuel supply has long depended on imports due to underinvestment and frequent disruptions caused by theft and pipeline vandalism.
These challenges have repeatedly undermined Nigeria’s standing as Africa’s leading oil producer.
The Dangote Refinery, which became operational last year, aims to reduce the country’s dependence on imported fuel and address supply chain issues.
However, crude oil deliveries from the NNPC remain insufficient, prompting the refinery to take measures to ensure uninterrupted operations.
This storage expansion marks a critical step in securing a stable crude supply, enabling the refinery to maintain its operations and support Nigeria’s energy security goals.
