The Dangote Petroleum Refinery is constructing eight new storage tanks with a mixed capability to carry 6.3 million barrels of crude oil to retailer imported crude.
In line with an unique report by Africa Report, the 650,000-barrel-a-day capability refinery struggles to get an ample native provide of crude, therefore it’s rising its crude import this 12 months.
The Vice chairman for oil and gasoline at Dangote Industries Ltd, Devakumar Edwin, stated crude provide from the Nigeria Nationwide Petroleum Firm Restricted (NNPCL) is inadequate.
Edwin, who famous that the refinery at present has 20 crude storage tanks with a capability of 120 million litres every, informed Africa Report that 4 of the brand new eight tanks being constructed are nearly accomplished.
“So we’ve got began constructing eight extra crude tanks to carry a billion litres, over and above our authentic storage capability,” he stated.
The Dangote Refinery began importing crude oil overseas final 12 months after NNPCL failed to provide it with ample crude oil for its operations.
Tanker-tracking knowledge compiled by Bloomberg present that the Dangote Refinery acquired shipments of imported crude as much as 358,000 barrels per day in December 2024.
The eight new tanks have a complete capability of 6.3 million barrels, which is equal to at least one billion litres of storage. In line with the report, the extra storage expands the power’s total capability to retailer crude by about 41%.
Dangote refinery retained 13% of Nigeria’s crude exports in 2024
Nairametrics reported that the Dangote refinery retained 13% of Nigeria’s crude oil exports as home provide in 2024, whereas additionally contributing to a lift in Nigeria’s crude imports.
Reuters reported that crude provides to the Dangote refinery raised Nigeria’s home share of oil exports from 2 p.c in 2023 and barely minimize the nation’s exports to Europe.
Nigeria imported 47,000 barrels per day of US West Texas Intermediate (WTI) oil in 2024 with Dangote refinery taking a considerable share of the imports.
What you must know
President Bola Tinubu has pledged to extend Nigeria’s crude oil manufacturing by about 1 million barrels per day and cut back dependency on crude imports. It isn’t clear if Dangote’s calls for will probably be met by this proposed rise in output.
Along with home provides, the Dangote refinery is exporting refined petroleum merchandise to numerous different nations together with Cameroon, Angola, Ghana, and South Africa in Africa, and a few European nations.
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