The Dangote Petroleum Refinery, a $20 billion facility, is expanding its storage capacity for imported crude oil by constructing eight additional tanks, increasing its total capacity to 3.4 billion litres. This move comes amid supply issues with local crude from the Nigerian National Petroleum Company Limited (NNPC).

The new tanks will increase the refinery's crude storage capacity by 41.67%, allowing it to stockpile more imported crude oil. According to Africa Report, the refinery aims to expand its storage by 6.29 million barrels, equivalent to 1 billion litres. This expansion is necessary due to the unreliability of local crude supplies, which has led to increased reliance on imports.

Devakumar Edwin, Vice President in charge of oil and gas business at Dangote Industries, explained that importing crude from other countries instead of buying locally means that the refinery's crude stockpiles will have to be higher. As a result, the refinery has started building eight additional crude tanks to hold a billion litres, over and above its original storage capacity. Four of these tanks are nearing completion.

The Dangote Petroleum Refinery currently operates 20 crude storage tanks, each with a capacity of 120 million litres, amounting to a total of 2.4 billion litres. Additionally, its refined product tanks can store up to 2.34 billion litres. However, Edwin noted that crude oil supply from the NNPC to the refinery remains "very low."

Nigeria, despite being Africa's largest oil producer, has relied heavily on fuel imports until the Dangote refinery began operations last year. The country continues to grapple with challenges such as underinvestment and frequent production disruptions caused by theft and pipeline vandalism. These issues have repeatedly caused Nigeria to lose its position as Africa's top oil producer in recent years.

The NNPC's Warri and Port Harcourt refineries have resumed operations, further stretching the company's obligation to supply crude oil beyond its commitments to the Dangote Refinery and the portion allocated for loan servicing. This has put additional pressure on the NNPC to meet its supply obligations, highlighting the need for increased storage capacity at the Dangote refinery.

The expansion of the Dangote refinery's storage capacity is a significant development in Nigeria's energy sector, as it aims to reduce the country's reliance on imported fuel and increase its refining capacity. The move is also expected to have a positive impact on the local economy, creating jobs and stimulating economic growth.

In conclusion, the Dangote Petroleum Refinery's expansion of its storage capacity is a crucial step towards addressing supply issues and increasing its refining capacity. As Nigeria continues to navigate the challenges of its energy sector, the success of the Dangote refinery will be closely watched, and its impact on the local economy will be significant.