Nigeria’s Dangote refinery is set to establish fuel storage tanks with a capacity of 1.6 million barrels in Namibia according to sources

Nigeria’s Dangote petroleum refinery plans to build storage tanks in Namibia capable of holding a minimum of 1.6 million barrels of gasoline and diesel, aimed at supplying refined fuel to southern Africa, according to two sources who spoke to Reuters on Wednesday. This action highlights the refinery’s goal to lead fuel supply in Africa and beyond, possibly transforming energy trade dynamics in the region and enhancing access to refined products for southern African countries. 

The refinery, capable of processing 650,000 barrels per day and constructed at a cost of $20 billion by Africa’s wealthiest individual, Aliko Dangote, commenced operations last year and has been increasing production while exploring new markets. According to sources familiar with the situation, the storage tanks are intended to provide gasoline and diesel to Botswana, Namibia, Zambia, and Zimbabwe. According to the sources, Dangote was contemplating the possibility of supplying fuel to the southern region of the Democratic Republic of Congo. 

A spokesperson for Dangote did not provide a response to the request for comment. The exact cost of the project remains uncertain; however, a second source indicated that the construction of the storage tanks is set to commence soon in the port city of Walvis Bay. 

An official from the Namibia Ports Authority has confirmed the plans, stating that the storage tanks will be located within the Walvis Bay harbour. Last month, a source indicated that a cargo was en route to Asia, marking the refinery’s inaugural sale of gasoline beyond the West Africa region. The Dangote refinery states that when operating at full capacity, the facility will generate sufficient output to satisfy Nigeria’s demand, significantly reducing the need for imported processed fuels, while also allowing for exports of the surplus.