The Dangote Petroleum Refinery is set to establish large-scale fuel storage facilities in Namibia, marking a major step in its strategy to expand refined product distribution across Southern Africa, according to sources familiar with the matter.

Two industry sources told Reuters on Wednesday that the planned storage hub in Walvis Bay will have a minimum capacity of 1.6 million barrels of gasoline and diesel.

The facility will serve as a regional supply point for countries including Namibia, Botswana, Zambia, and Zimbabwe, with potential expansion into southern Democratic Republic of Congo.

The project is part of Dangote Refinery’s broader push to diversify markets beyond Nigeria and dominate Africa’s refined fuel supply chain.

The $20 billion refinery, with a nameplate capacity of 650,000 barrels per day, began operations in 2023 and has since ramped up production while seeking new export destinations.

An official from the Namibia Ports Authority confirmed that the storage tanks would be located within the Walvis Bay harbour, although the total investment cost and timeline for completion remain undisclosed.

Sources said construction is expected to commence shortly.

This marks a strategic shift for the refinery, which has primarily focused on West African markets.

A Dangote cargo was reportedly shipped to Asia last month, signaling the company’s first gasoline export outside the West African subregion.

At full capacity, the refinery is projected to meet Nigeria’s domestic fuel demand while exporting surplus volumes.

With Nigeria already slashing fuel imports due to rising local output, the move into southern African markets could significantly alter regional fuel trade flows.

A Dangote spokesperson declined to comment on the development.