Aliko Dangote’s refinery explores fuel storage terminal in Cameroon to boost regional supply

Dangote Petroleum Refinery, the $20-billion industrial complex owned by Africa’s richest man Aliko Dangote, is considering plans to build a petroleum products storage terminal in Cameroon. This move could create a new outlet for fuels produced at its Lekki Refinery while strengthening its footprint across Central Africa.

The proposal, still at the discussion stage, was presented to Prime Minister Joseph Dion Ngute on July 21 by Devakumar Edwin, Vice President for Oil, Gas and Fertilizer at the group.

Dangote eyes strategic fuel storage role

According to Edwin, the company is exploring the development of a storage facility that would support Cameroon’s strategic petroleum reserves and enhance fuel supply security. The project could also include a pipeline network to transport refined products, reducing logistics costs and limiting the environmental risks associated with road transport.

No agreement was reached following the meeting, and key details, including location, storage capacity, investment value, and timeline, remain undisclosed. Dangote has also not clarified whether it intends to fully own the terminal or partner with state entities through a concession or public-private partnership.

These factors will be critical, given that fuel storage is a tightly regulated segment tied to taxation, industrial safety, and national energy security.

Currently, Cameroon’s storage and distribution infrastructure is dominated by the National Petroleum Storage Company, which manages nationwide reserves and supply systems.

Kribi emerges as major storage hub

Dangote’s interest comes as Cameroon advances two major fuel storage projects in the port city of Kribi.

The SCDP is developing a petroleum terminal with a planned capacity of about 230,000 cubic meters for refined products and 40,000 metric tons for liquefied petroleum gas. This project is expected to nearly double the country’s current liquid fuel storage capacity, estimated at approximately 245,500 cubic meters.

A second project, led by CSTAR Tank Farm Project Management, involves a terminal with an initial capacity of between 250,000 and 300,000 cubic meters. The venture is backed by Ariana Energy (49%), Tradex (31%), and the National Hydrocarbons Corporation (20%), with an estimated cost of about CFA168 billion.

Combined, the SCDP and CSTAR projects could add at least 480,000 cubic meters of storage capacity, significantly expanding Cameroon’s fuel infrastructure.

Lekki refinery seeks export outlets

For Dangote, the proposed terminal would serve as more than a domestic storage facility. It could act as a regional distribution hub for refined products from its 650,000-barrel-per-day Lekki refinery, which was designed to supply Nigeria while exporting to neighboring markets.

A coastal terminal in Cameroon would provide a strategic logistics base to serve not only the domestic market but also landlocked countries such as Chad and the Central African Republic, both of which depend on Cameroonian ports.

This approach would allow Dangote to position fuel inventories closer to end markets, reduce delivery times, and improve supply chain efficiency. For Cameroon, it could diversify fuel supply sources, provided pricing and regulatory frameworks remain aligned.

Potential shift in Cameroon’s fuel market

If executed, the project could reshape Cameroon’s petroleum storage landscape, though its future remains uncertain.

Its viability will depend on regulatory approvals, the chosen partnership structure, financial feasibility, and how it integrates with existing public-sector projects in Kribi. The government has already positioned new storage terminals as part of its strategy to address supply disruptions and infrastructure gaps.

Dangote’s entry could complement these efforts, or compete with them for access to port infrastructure, financing, and fuel volumes.

After establishing a presence in Cameroon through its cement operations in Douala, the group is now looking to expand into the downstream petroleum sector. For now, however, the proposal remains at an early stage, with its industrial and financial scope yet to be defined.

Currently worth $31 billion according to Forbes, Dangote has described the refinery as a critical step toward achieving energy independence for Africa. Strategically located on the Atlantic coast, the facility is positioned to serve both Western and Eastern markets, creating new trade routes and strengthening the continent’s role in global energy markets.