Dangote Expands Refinery Storage Capacity to 5.3 Billion Litres

 

The President of the Dangote Group, Aliko Dangote, announced plans to increase the storage capacity of the Dangote Petrochemical Refinery by 600 million litres, bringing the total capacity to 5.3 billion litres.

Speaking at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum in Nassau, The Bahamas, Dangote highlighted the significance of this expansion in bolstering the refinery’s role as a strategic reserve for Nigeria’s petroleum products.

“We currently have 4.78 billion litres of storage capacity for refined petroleum products. With the additional 600 million litres, our refinery will effectively serve as the strategic reserve for the country,” Dangote stated.

Addressing questions about potential impacts on fuel prices, particularly petrol, Dangote referenced the refinery’s success in reducing diesel prices upon its introduction to the market.

“When we first started with diesel, prices dropped significantly from ₦1,700 to ₦1,200 per litre,” he noted, underscoring the refinery’s potential to stabilize and potentially lower fuel costs.

However, Dangote acknowledged that challenges remain in influencing petrol prices directly, stating, “The issue of gasoline is being handled by the government.” Despite these challenges, he expressed confidence in the refinery’s ability to contribute positively to Nigeria’s energy landscape.

Dangote also discussed regulatory concerns regarding the quality of imported fuels, advocating for stricter enforcement to prevent the entry of substandard products into the market.

“Dirty fuels have been linked to health issues such as cancer in Nigeria and across Africa,” he emphasized, calling for international cooperation to uphold fuel quality standards.

Reflecting on the journey of building the $19 billion refinery, Dangote revealed encounters with international oil companies and financial challenges, including attempts to disrupt the project’s progress.

“The mafia in the oil sector is stronger than in drugs,” he remarked, highlighting persistent efforts to impede the refinery’s development.

Despite these hurdles, Dangote remains steadfast in his commitment to advancing energy independence and economic growth, both in Nigeria and beyond.

He outlined plans to supply cheaper fuel to the Caribbean region, leveraging bilateral agreements and setting up terminals to facilitate energy accessibility.

As the refinery progresses towards full operational capacity, Dangote assured stakeholders of continued efforts to fulfill Nigeria’s energy needs responsibly.

“We’ve made significant strides in project financing and infrastructure development,” he concluded, affirming the refinery’s pivotal role in transforming Nigeria’s energy landscape.