Aliko Dangote, President of the Dangote Group, announced plans to increase the storage capacity of the Dangote Petrochemical Refinery by 600 million litres, pushing the total capacity to 5.3 billion litres.
Speaking at the Afreximbank Annual Meetings and AfriCaribbean Trade & Investment Forum, Dangote emphasized the strategic importance of this expansion.
“This additional storage capacity will position our refinery as a vital strategic reserve for Nigeria’s petroleum products,” Dangote stated during the forum in Nassau, The Bahamas.
The expansion comes amid discussions about the potential impact on fuel prices in Nigeria.
When asked about the possibility of reducing petrol prices, currently around N700 per litre, Dangote pointed to the significant drop in diesel prices following the introduction of Dangote Diesel.
“The issue of gasoline pricing is managed by the government. However, with diesel, we saw a substantial drop from N1,700 to N1,200 per litre shortly after our diesel flooded the market,” Dangote explained, highlighting a 60% price reduction.
Dangote underscored the refinery’s role in reducing reliance on imported fuels and enhancing Nigeria’s energy security.
“The country lacks strategic reserves for petrol, posing significant risks. Our refinery will mitigate these risks,” he affirmed.
Reflecting on challenges encountered during the project, Dangote disclosed attempts by international oil companies to hinder access to crude oil.
“For decades, these companies enjoyed a monopoly. They were skeptical about our refinery’s success,” he noted.
Despite initial opposition, Dangote remained resolute, securing feedstock from the United States to sustain operations.
He also emphasized the detrimental impact of importing low-quality fuels into Nigeria, advocating for stringent regulatory enforcement to halt these imports.
“Dirty fuels contribute to health hazards like cancer. Regulatory bodies must enforce stringent standards to protect public health,” Dangote urged.
Looking ahead, Dangote outlined plans to export refined products to the Caribbean, where energy costs are steep.
“Our refinery will support regional economies by offering competitively priced fuels. We are exploring setting up a terminal in the Caribbean to facilitate access,” he elaborated.
Addressing financial aspects of the project, Dangote disclosed progress in loan repayments.
“We initially borrowed $5.5 billion, and to date, we have repaid $2.4 billion. The remaining $2.7 billion will be settled soon,” he confirmed.
Commenting on the refinery’s energy consumption, Dangote clarified that it operates independently of the national grid, producing approximately 1,500 megawatts for internal use. He encouraged further investments in power generation to support industrial growth.
“Our refinery and industries are self-sufficient in energy. We aim to inspire similar self-reliance across Africa,” Dangote concluded, highlighting the refinery’s pivotal role in regional development.
The Dangote Petrochemical Refinery, one of the largest projects in Africa, is set to reshape the continent’s energy landscape upon completion.