The Dangote Petroleum Refinery is set to enhance its crude oil storage capacity by adding eight new tanks, which will increase its total storage volume by 1 billion litres, or approximately 6.29 million barrels.

This expansion comes in response to ongoing challenges with the reliability of local crude oil supplies, necessitating a greater reliance on imported crude.

According to a recent report from the Nigerian Electricity Regulatory Commission (NERC), the refinery's current capacity is being stretched as it ramps up production to meet the growing demand for petrol among Nigerian consumers.

The facility, which has a processing capacity of 650,000 barrels per day and represents a $20 billion investment, aims to stockpile imported crude oil to ensure consistent operations amidst fluctuations in local supply.

Devakumar Edwin, Vice President of Oil and Gas Operations at Dangote Industries, emphasized the need for increased storage capacity due to the refinery's dependence on imported crude. He noted that four of the eight new tanks are nearing completion, which will significantly bolster the refinery's ability to maintain adequate stock levels.

The report highlights that the Nigerian National Petroleum Company Limited (NNPCL) has been unable to provide sufficient crude deliveries, prompting Dangote to seek alternatives. With this expansion, the refinery's overall crude storage capacity will rise by 41.67%, reaching a total of 3.4 billion litres.

In addition to enhancing storage capabilities, the Dangote Refinery is also preparing to commence production at its upstream projects in Oil Mining Leases 71 and 72 in the Niger Delta. This initiative is expected to begin producing approximately 20,000 barrels per day, further supporting the refinery's operations and reducing its reliance on imports.