Douala: The Dangote Group has revealed plans to develop a petroleum products storage terminal in Cameroon, aiming to bolster the regional distribution network of its massive Lekki refinery and expand its presence in Central Africa. The proposal was presented to Cameroon's Prime Minister, Joseph Dion Ngute, by Devakumar Edwin, the Group's Vice President for Oil, Gas and Fertiliser.
According to Ghana Web, the proposed facility is expected to enhance Cameroon's strategic petroleum reserves and improve fuel supply security. The proposal includes the possibility of a pipeline network for transporting refined products, which could reduce logistics costs and lessen the environmental impact associated with road transport.
The project is currently in the discussion phase, with no agreement reached after the recent meeting. The Dangote Group has not yet disclosed key details such as the terminal's location, storage capacity, investment value, or timeline for implementation. It is also unclear whether the facility would be fully owned by Dangote or developed in partnership with the Cameroonian government or through a public-private partnership.
If realized, the terminal would serve as a significant export hub for petroleum products from the Dangote refinery in Lekki, Lagos, designed to meet domestic demand while also supplying regional markets. The terminal is expected to cater not only to the Cameroonian market but also to landlocked countries like Chad and the Central African Republic, which depend on Cameroonian ports for fuel imports.
By positioning inventories closer to the end-users, the company aims to reduce delivery times, lower distribution costs, and improve fuel supply efficiency across the region. For Cameroon, the investment could enhance fuel supply security and diversify petroleum product sources, contingent upon alignment with the country's pricing, taxation, and strategic reserve policies.
The proposal comes as Cameroon seeks to expand its petroleum storage capacity through infrastructure projects in the port city of Kribi. The National Petroleum Storage Company is currently developing a terminal with a planned capacity of 230,000 cubic metres for refined products, alongside storage for liquefied petroleum gas. A second terminal is being developed by CSTAR Tank Farm Project Management, providing additional storage capacity.
Together, these projects are expected to significantly increase Cameroon's liquid fuel storage capacity. However, Dangote's proposed facility could either complement the government's efforts or compete for access to port infrastructure and other resources.
Cameroon's petroleum storage sector is presently dominated by the National Petroleum Storage Company, which manages the country's storage facilities and distribution network. If approved, the Dangote project would mark the group's entry into Cameroon's downstream petroleum sector, adding to its existing cement manufacturing operations in Douala.
The proposal underscores Dangote's ambition to create a comprehensive regional fuel distribution network based on its Lekki refinery, which has been increasing exports to African and global markets.