By: Ecofin Agency

The Dangote refinery is now looking beyond Nigeria. Chief Executive Officer David Bird announced on Tuesday, June 2, that the group is studying new pipeline projects reaching South Africa and the Democratic Republic of Congo (DRC). He said the projects would strengthen the refinery’s commercial penetration across Africa during the S&P Global Middle East Petroleum & Gas Conference in London.

“Probably the most advanced project is our opportunity southwest from the storage site in Namibia, then a pipeline through Botswana to Zimbabwe, Zambia, potentially to South Africa and perhaps as far as the DRC,” Bird said at the conference.

The projects build on groundwork that the company has already laid. In November 2025, Dangote signed a memorandum of understanding in Harare to construct a 2,500-kilometer petroleum products pipeline linking a planned depot in Walvis Bay, Namibia, with Botswana, Zimbabwe and Zambia, according to company statements issued at the time. The proposed extensions into South Africa and the DRC would expand that original project.

To support those deliveries, Dangote is developing a new marine terminal with four berths at its Nigerian refinery. In Namibia, the company is finalizing a 240-million-barrel storage facility. Bird added that Dangote is also discussing plans to develop storage capacity at the former Sonara refinery site in Cameroon.

A Continental Strategy Takes Shape

The infrastructure projects form part of a broader commercial strategy. In 2025, West Africa accounted for 56% of Dangote’s sales, representing 4 million metric tons of fuel. Southern Africa received only 158,000 metric tons, while Central Africa received just 30,000 metric tons, according to figures the company presented at the conference.

However, Dangote has already begun increasing its presence in those markets. In March, the refinery delivered a record 30,000 barrels per day to South Africa, according to maritime flow-tracking data from S&P Global Commodities at Sea. By mid-May, the company had completed its first export shipment to China, further expanding its commercial reach.

Bird said pipeline investment remains essential for lowering delivery costs. Many African markets lack adequate storage infrastructure and therefore rely heavily on trucking, which can extend delivery times to four or five days. He said pipelines would reduce transportation costs and help stimulate regional demand.

Bird also confirmed plans to build a second refinery in East Africa based on the Nigerian model.

Meanwhile, analysts at S&P Global's CERA unit expect Nigeria’s oil consumption to increase from 450,000 barrels per day to 740,000 barrels per day by 2035, allowing the country to overtake South Africa as Africa’s largest oil consumer. The analysts forecast total African oil demand at 4.8 million barrels per day in 2026.

Despite its regional ambitions, Dangote continues to face challenges in Nigeria. Security risks and pipeline sabotage have reduced the attractiveness of pipeline transportation in the refinery’s home market. Dangote purchased 4,000 compressed natural gas trucks to distribute fuel domestically. However, the company has not yet deployed most of the fleet following protests by truck drivers last year.