Dangote Refinery Expands to Southern Africa with Fuel Storage Project in Namibia

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The Dangote Petroleum Refinery has begun preparations to build large-scale fuel storage facilities in Namibia, signaling a bold expansion into Southern Africa’s energy market. According to industry sources who spoke to Reuters, the new depot will have a projected capacity of at least 1.6 million barrels of gasoline and diesel, with the goal of strengthening fuel supply chains across the region.

The facilities will be constructed in the port city of Walvis Bay, Namibia’s gateway for fuel imports, and will serve as a distribution hub for refined products to Namibia, Botswana, Zambia, Zimbabwe, and potentially the southern Democratic Republic of Congo. A Namibian Ports Authority official confirmed that the tanks will be situated within the Walvis Bay harbour, although Dangote Group has not issued an official statement.

This marks a significant step in Dangote Refinery’s strategy to extend its market reach beyond Nigeria, after beginning operations in 2024. The 650,000 barrels-per-day Lagos-based facility, built at a cost of $20 billion by Africa’s richest man, Aliko Dangote, is already reshaping fuel flows within West Africa and now looks to deepen its influence further south.

“This is a strategic move to position Dangote as the dominant player in Africa’s refined fuel supply,” said one industry insider familiar with the plans. “With Nigerian demand already being met locally, the refinery is eyeing new markets.”

The Walvis Bay project comes amid ongoing expansion at the refinery itself. Earlier this year, Dangote Refinery began construction of eight additional crude storage tanks, boosting overall crude holding capacity by 6.29 million barrels (1 billion litres) — a 41.67% increase to 3.4 billion litres.

As the refinery ramps up output and builds storage to match, it is also expanding its export horizons. Last month, a Dangote gasoline shipment was reported to be heading to Asia, marking the first time the refinery sold outside the West African sub-region.

At full capacity, the Dangote Refinery is expected to not only meet all of Nigeria’s domestic fuel demand but also serve as a major exporter of gasoline, diesel, aviation fuel, and petrochemicals. This latest move into Namibia is viewed as a strategic investment in infrastructure that could reshape energy trade patterns across Africa, giving landlocked Southern African nations more reliable access to refined products.

While details on project cost and timelines remain undisclosed, construction of the Namibian fuel tanks is expected to commence soon. Analysts say Dangote’s Southern Africa play could undercut traditional fuel suppliers in the region and reduce dependency on imports from the Middle East and Asia.

With eyes set firmly on continental energy dominance, Dangote Refinery is rapidly positioning itself as a pan-African energy powerhouse, driving a shift toward greater self-sufficiency and intra-African trade in refined fuels.

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