Dangote expands refinery storage by 600 million litres

The Dangote Group President, Alhaji Aliko Dangote, announced on Wednesday that the storage capacity of his refinery will be increased by 600 million litres.

This expansion will bring the total storage capacity to 5.3 billion litres, up from the current 4.78 billion litres.

Speaking at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum, Dangote revealed that the expansion is part of a strategic move to strengthen the refinery’s role as a reserve for refined petroleum products in Nigeria.

However, Dangote highlighted challenges from international oil companies, which he accused of refusing to sell crude oil to his refinery to thwart its success.

“In a system where, for 35 years, people are used to counting good money, and all of a sudden, they see that the days of counting that money have come to an end, you don’t expect them to pray for you. Of course, you expect them to fight back,” Dangote said.

When questioned about the potential impact of his refinery on petrol prices, which currently hover around N700 per litre, Dangote refrained from making definitive statements. He instead pointed to the significant drop in diesel prices, from N1,700 to N1,200, following his refinery’s market entry.

“The issue of gasoline is certainly a different issue. That one is being dealt with by the government,” he noted. Dangote emphasized the refinery’s role in reducing Nigeria’s dependence on imported fuels and its potential to lower fuel prices in the region, including the Caribbean.

Dangote also urged the Nigerian government to enforce regulations against the importation of dirty fuels, citing their link to increased cancer rates in Nigeria and Africa. He disclosed ongoing plans to ensure the refinery’s products meet high-quality standards, contrasting with the low-grade fuels currently imported into the country.

Despite these challenges, Dangote remains optimistic about the refinery’s impact on Nigeria and beyond. He revealed that his refinery is poised to end Nigeria’s dependence on imported petrol by July and plans to offer cheaper fuel options to the Caribbean.

Dangote’s refinery project, valued at $19 billion, has faced numerous obstacles, including sabotage attempts by international and local oil cartels. Nevertheless, the billionaire remains committed to completing the project and revolutionizing the region’s energy landscape.

The expansion of the Dangote refinery’s storage capacity is expected to bolster Nigeria’s energy security and drive down fuel prices, providing significant economic relief to consumers and businesses alike.