Economics, Featured, Politics

Dangote Refinery Expands Maritime Operations To Handle 600 Vessels Annually

Ogunbiyi Kayode

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February 26, 2026

The Chief Executive Officer of Dangote Refinery and Petrochemical, David Bird, has revealed that the $20 billion facility is actively expanding its operations to strengthen storage, logistics, and maritime infrastructure. Bird emphasized that the refinery’s coastal location with deep-sea access was deliberately chosen to enable efficient import and export activities.

Speaking to members of the Maritime Correspondents’ Organisation of Nigeria (MARCON) during a recent tour of the facility on Tuesday, Bird highlighted the unique operating model of the refinery, seeking to dispel misconceptions about its structure. Unlike conventional refineries dependent on a single crude oil pipeline, the Dangote Refinery functions primarily as a merchant facility with a strong reliance on maritime operations. Bird noted that the refinery’s dedicated port is expected to handle around 600 vessels annually as production scales up.

“The level of vessel traffic opens significant opportunities for job creation, local content development, and growth in logistics,” Bird said. Addressing the question of whether Dangote Industries intends to venture fully into shipping, he explained that the company aims to gain greater control over its supply chain. To date, the company has moved from sourcing vessels on the open market to time-chartering ships, with full vessel acquisition planned once cash flow permits.

Bird added that controlling the supply chain is a strategic necessity, citing recent disruptions in shipping as a compelling reason for deeper involvement. He also framed this approach within Dangote’s broader Pan-African ambitions, pointing to plans for a tank farm in Namibia and ongoing discussions in Cameroon and Ghana. The goal, he explained, is to secure reliable outlets for refined products across the continent.

Unlike traditional refineries in crude-producing regions or the Middle East that process a single type of crude oil, Dangote Refinery operates on a global merchant model akin to facilities in Rotterdam and Singapore. Under this model, feedstock is sourced from multiple international locations and transported by sea. Finished products are then distributed both domestically and internationally through maritime channels. Bird explained, “This is not a refinery just sitting at the end of a crude pipeline. All of our feedstock comes by sea, and our products can either serve Nigeria or reach global markets. That is the essence of a merchant refinery.”

Providing further context, Victor Ngangha Oyama, an engineer in the Maintenance Planning Department who guided the MARCON tour, described the evolution of Dangote Port. Originally constructed as a jetty to receive specialized equipment during the refinery’s construction, the port has been transformed into a full-scale import and export hub. Oyama noted that it now handles fertilizer exports to countries including Brazil, receives raw materials, and is scheduled for further expansion to accommodate more vessels as operations grow. This expansion, he added, reinforces the refinery’s increasing footprint in both regional and global maritime trade.

Captain Satendra Singh Rana, Head of Marine, Petroleum, and Petrochemical at the refinery, offered a detailed overview of the offshore marine infrastructure at the facility. Speaking to journalists at the landfall point where crude oil is received and refined products are exported, he explained that the refinery operates five Single Point Mooring (SPM) buoys offshore—two for crude oil and three for refined products—connected by 48-inch pipelines buried two meters beneath the seabed for safety.

Rana highlighted that the crude SPMs can accommodate the world’s largest tankers, including Very Large Crude Carriers (VLCCs) carrying up to two million barrels, with some shipments delivering as much as three million barrels at once. The system is designed for rapid turnaround, with most vessels serviced within 24 hours, while larger tankers are completed within 36 hours. To date, the facility has handled approximately 800 tankers, marking a significant milestone for a new refinery-terminal combination.

“With the refinery ramping up to 650,000 barrels per day, we expect to see about 600 tankers per year, combining crude imports and product exports,” Rana said. He added that the offshore design takes advantage of natural water depths—up to 40 meters for crude and 20 meters for refined products—reducing the need for costly maintenance dredging. The SPMs and telemetry systems, designed and manufactured by a Houston-based company in the United States, rank among the highest-rated and safest equipment in the global maritime energy sector.

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