The Dangote Petroleum Refinery is expanding its crude oil storage capacity by constructing eight additional tanks to accommodate imported crude oil. This move will increase its storage capacity by 6.29 million barrels, equivalent to 1 billion litres, according to a report by Africa Report.
Currently, the refinery operates 20 crude storage tanks, each with a capacity of 120 million litres, amounting to a total of 2.4 billion litres. Additionally, its tanks for refined products collectively hold 2.34 billion litres.
According to the report, the $20 billion refinery has opted to stockpile imported crude oil due to unreliable local supplies. Officials have attributed this to the low crude supply from the Nigerian National Petroleum Company Limited (NNPCL), which has driven the refinery’s dependence on imports.
Speaking on this development, Devakumar Edwin, Vice President of Oil and Gas Operations at Dangote Industries, explained:
“Importing crude from other countries instead of sourcing locally means that our crude stockpiles need to be larger. Consequently, we have started building eight additional crude tanks to hold 1 billion litres, over and above our original storage capacity. Four of these tanks are nearing completion.”
Impact of Dangote Refinery on the Oil Market
The establishment of the Dangote Refinery has significantly influenced Nigeria’s oil industry, improving fuel availability nationwide and reducing petrol prices. However, the refinery’s reliance on imported crude to supplement inadequate deliveries from the NNPCL has highlighted the insufficiency of its current 20 storage tanks.
The addition of the new tanks is expected to bolster the refinery’s capacity to manage increased crude imports, further enhancing its operational efficiency and stability.
