The Dangote Group has proposed the construction of a petroleum products storage terminal in Cameroon as it seeks to strengthen the regional distribution network of its 650,000-barrel-per-day Lekki refinery and expand its footprint in Central Africa.
The proposal was presented to Cameroon’s Prime Minister, Joseph Dion Ngute, on Tuesday by the Group’s Vice President for Oil, Gas and Fertiliser, Devakumar Edwin.
According to details of the proposal shared by a local media outlet, Business in Cameroon, seen on Friday, the planned facility would help build Cameroon’s strategic petroleum reserves, improve fuel supply security and potentially include a pipeline network for transporting refined products, reducing logistics costs and the environmental impact associated with road haulage.
The project, however, remains at the discussion stage, with no agreement announced after the meeting. The Dangote Group has yet to disclose the proposed location of the terminal, its storage capacity, investment value or implementation timeline.
It has also not stated whether the facility would be wholly owned, developed in partnership with the Cameroonian government or executed under a public-private partnership arrangement.
If realised, the project would provide a major export outlet for petroleum products from the Dangote refinery in Lekki, Lagos, which was built to meet domestic demand while supplying regional markets across Africa.
According to reports, the proposed terminal would also position the company to serve not only the Cameroonian market but also landlocked Central African countries, including Chad and the Central African Republic, which rely heavily on Cameroonian ports for fuel imports.
By positioning petroleum inventories closer to end-users, the company is expected to reduce delivery times, lower distribution costs and improve the efficiency of fuel supply across the region.
For Cameroon, the investment could strengthen fuel supply security and diversify petroleum product sources, provided the project aligns with the country’s pricing framework, taxation policies and strategic reserve requirements.
It was learnt that the proposal comes as Cameroon intensifies efforts to expand its petroleum storage capacity through major infrastructure projects in the port city of Kribi.
The country’s National Petroleum Storage Company is currently developing a petroleum terminal with a planned storage capacity of 230,000 cubic metres for refined products, including petrol, diesel and kerosene, alongside facilities capable of storing 40,000 metric tonnes of liquefied petroleum gas.
The project is expected to almost double Cameroon’s existing liquid fuel storage capacity of about 245,500 cubic metres. A second terminal is also being developed by CSTAR Tank Farm Project Management, a consortium owned by Ariana Energy, Tradex and Cameroon’s National Hydrocarbons Corporation.
The CSTAR project is expected to provide between 250,000 and 300,000 cubic metres of storage for diesel, petrol, aviation fuel, kerosene and heavy fuel oil at an estimated cost of CFA168bn.
Combined, the two projects are projected to add at least 480,000 cubic metres of liquid fuel storage capacity to the country’s downstream petroleum sector.
It was said that Dangote’s proposed facility could either complement the government’s ongoing investments or compete with them for access to port infrastructure, financing, pipeline networks and petroleum product volumes.
Cameroon’s petroleum storage business is currently dominated by the National Petroleum Storage Company, which manages the country’s fuel storage facilities, nationwide distribution network and strategic petroleum reserves.
If approved, the Dangote project would mark the group’s entry into Cameroon’s downstream petroleum sector, adding to its existing presence in the country through its cement manufacturing operations in Douala.
The proposal is the latest indication of the group’s ambition to establish a broader regional fuel distribution network anchored on its Lekki refinery, which has increasingly expanded exports to African and international markets.