Africa’s biggest oil refinery is preparing for a major increase in shipping activity as it ramps up production, with plans to handle around 600 vessels each year.
The $20 billion Dangote Petroleum Refinery, located in Lagos, is designed to rely heavily on sea transportation for both crude oil supply and fuel exports. Unlike many refineries that receive crude through pipelines, all of the refinery’s feedstock is delivered by ships, while refined products are transported to both local and international markets by sea.
According to David Bird, chief executive officer of the refinery, the facility operates a global merchant refinery model similar to those found in major energy hubs such as Rotterdam and Singapore. He explained that this setup makes marine logistics, storage, and port infrastructure just as important as the refining process itself.
The refinery has already handled hundreds of vessels since operations began, even before reaching full production levels. As output moves closer to its designed capacity of about 650,000 barrels per day, shipping traffic is expected to increase significantly.
Experts say the rise in vessel traffic could boost Nigeria’s maritime industry by creating jobs, expanding port services, and increasing opportunities for local logistics providers. The development is also expected to strengthen Nigeria’s position in the regional fuel trade, reducing dependence on imported refined products.
To improve efficiency and reduce risks, Dangote Industries is gradually taking more control of its shipping operations. The company has moved from hiring vessels on short-term arrangements to longer-term charters and is considering buying its own ships in the future as revenues grow.
The refinery’s offshore infrastructure includes multiple single-point mooring systems that allow large oil tankers to load and offload safely at sea. These systems are connected to the refinery by underwater pipelines and are built to handle some of the largest crude carriers in global shipping.
Beyond fuel, the refinery’s port has also begun supporting other exports, including fertiliser shipments to international markets. Further expansion of the port facilities is planned as overall operations scale up.
