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Dangote Refinery to Build 1.6 Million-Barrel Fuel Storage Terminal in Namibia, Expanding Reach Across Southern Africa

BSN PARTNER by BSN PARTNER
July 10, 2025
in Energy
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Dangote Petroleum Refinery

Dangote Petroleum Refinery

The Dangote Petroleum Refinery, owned by Africa’s richest man Aliko Dangote, is preparing to construct a massive fuel storage facility in Namibia, marking a strategic expansion into southern Africa’s energy market.

The upcoming project will be sited at Walvis Bay, a prominent Atlantic port city and key logistics hub in Namibia. The new storage tanks will have the capacity to hold at least 1.6 million barrels of gasoline and diesel, positioning the refinery to supply refined petroleum products to Namibia, Zambia, Zimbabwe, Botswana, and the southern Democratic Republic of Congo (DRC).

According to Reuters, the move is a significant leap forward for the 650,000 barrels-per-day refinery, which began operations in 2024 and has steadily increased production while targeting new international markets.

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“Nigeria’s Dangote petroleum refinery will construct storage tanks in Namibia to hold at least 1.6 million barrels of gasoline and diesel to supply refined fuel to southern Africa,” Reuters reported.

The decision to build fuel tanks in Namibia is more than an infrastructure upgrade; it signals Dangote Refinery’s intent to become a continental powerhouse in the refined fuel trade. By anchoring its supply chain in southern Africa, the refinery will not only reduce regional dependency on traditional European imports but also potentially reshape trade flows across the African continent.

Strategic Expansion Into Global Markets

Since early 2024, Dangote Refinery has been actively expanding its footprint. The company began by exporting gasoil to West African markets, which helped decrease the region’s reliance on imports from Europe. This marked the refinery’s entry into the export scene, even before reaching full operational capacity.

By June 2025, the refinery took a bold step into the global fuel market, exporting aviation fuel, diesel, naphtha, and petrol (PMS) to destinations across Africa, Europe, Asia, and the Americas. This aggressive export strategy reinforces Dangote’s long-term goal of becoming one of the leading players in international energy trade.

Impact on Southern Africa’s Fuel Security

The new Namibian facility is expected to bolster energy security in the Southern African Development Community (SADC) region by offering more consistent and possibly more affordable access to refined products. With Walvis Bay serving as a central hub, fuel distribution to landlocked nations such as Zambia, Zimbabwe, and Botswana will become more streamlined and cost-effective.

An official from the Namibia Ports Authority confirmed the development, noting that the storage tanks would indeed be installed within the Walvis Bay harbour precinct.

Read Also: Dangote Unveils Bold Plan To End Africas Fertilizer Imports Within 40 Months

Dangote Refinery’s Namibian expansion is more than a business venture; it is a regional game-changer. With the potential to shift Africa’s fuel supply dynamics, the move positions the refinery as a cornerstone in Africa’s march toward energy independence and continental integration in the downstream petroleum sector.

As the facility in Walvis Bay takes shape, southern Africa may soon have a reliable, African-owned supplier at its doorstep—driving regional cooperation, reducing foreign dependency, and solidifying Nigeria’s role in Africa’s energy future.

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