Two sources confirmed on Wednesday that the refinery in Nigeria, Dangote Petroleum, will build storage tanks in Namibia for at least 1.6 millions barrels of gasoline or diesel to be supplied to southern Africa.
This move demonstrates the refinery’s ambition to dominate the fuel supply market in Africa, and beyond. It could reshape energy trade flows and increase access to refined products in southern African countries.
Aliko Dangote is Africa’s richest person. He built a $20 billion refinery that produces 650,000 barrels of oil per day. It started operating last year. Since then, it has increased production and sought new markets.
Sources who were informed of the development said that the storage tanks will be used to provide gasoline and diesel to Botswana Namibia Zambia and Zimbabwe.
Sources said that Dangote also considered supplying fuel to the southern Democratic Republic of Congo.
A Dangote representative did not respond to an inquiry for comment.
The cost of the project was not immediately known, but a second source confirmed that construction on the tanks in Walvis Bay would soon begin.
An official from the Namibia Ports Authority confirmed the plans, and stated that the tanks will be located in the Walvis Bay Harbour.
Last month, a source reported that the first gasoline sold by the refinery outside of West Africa was headed to Asia.
The Dangote Refinery claims that at full capacity the plant will produce enough fuel to meet the demand in Nigeria. Nigeria has drastically reduced its imports of refined fuels and the remainder is exported. MacDonald Dzirutwe, Nyasha Nyaungwa and Bill Berkrot contributed to this report.
(source: Reuters)
