AGS NEWS – The Dangote Petroleum Refinery is building eight additional tanks to boost its crude oil storage capacity amid challenges with local crude supply

The $20 billion refinery plans to increase its storage by 6.29 million barrels, or 1 billion litres, bringing total crude storage capacity to 3.4 billion litres—a 41.67% increase.

Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, explained that low crude supply from the Nigerian National Petroleum Company Limited (NNPC) has driven reliance on imports. “Importing crude from other countries means we need higher stockpiles,” Edwin said, noting that four of the eight new tanks are nearing completion.

The refinery currently operates 20 crude storage tanks with a total capacity of 2.4 billion litres and refined product tanks capable of holding 2.34 billion litres.

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Since beginning production in 2024, Dangote has supplied diesel, aviation fuel, and petrol to the domestic market and exports. However, Edwin described crude oil supply from the NNPC as “still very low.”

Nigeria, Africa’s largest oil producer, has faced production challenges due to theft and pipeline vandalism, affecting crude availability. The NNPC has resumed operations at its Warri and Port Harcourt refineries, increasing demand for local crude supplies.

In August, President Bola Tinubu introduced a naira-for-crude initiative, allowing local refineries to pay for crude in naira. The Dangote refinery was used as a pilot for the program, which started in October, aiming to supply 385,000 barrels per day of crude to the facility.

Despite initial challenges, the naira-for-crude deal has reportedly reduced petroleum prices in Nigeria. Dangote is now ramping up production, with its petrol gaining traction among Nigerian motorists.