Dangote Group has presented a proposal to the Cameroonian government, mulling the construction of a petroleum products storage terminal in the country.
The company wants to explore the development of a storage facility that would help build Cameroon’s strategic petroleum reserves and improve the country’s fuel supply security. The project could also include a pipeline network to transport refined products, reducing logistics costs and limiting the environmental impact of road transport.
The project, if approved, will create a new outlet for petroleum products manufactured at the hiuge Lekki refinery in Nigeria . It will also strengthen the company’s presence in Cameroon and across Central Africa.
Cameroon’s Prime Minister Joseph Dion Ngute received the proposal from Devakumar Edwin, Dangote Group’s Vice President for Oil, Gas and Fertilizer.
The two did not announce any agreement after the meeting.
No agreement was announced following the meeting. Dangote has yet to disclose the proposed location, storage capacity, investment value, or development timeline. The company has also not indicated whether it intends to own and operate the terminal, partner with a state-owned company, or develop the project through a concession or public-private partnership.
Dangote currently exports gasoline to Cameroon through Neptune Oil , but Cameroon’s National Petroleum Storage Company (SCDP) is the manager of petroleum storage and distribution nationwide, including the government’s strategic fuel reserves.
It is not clear how Dangite’s terminal plans will segue into SCD’s plan for two major fuel storage projects in the port city of Kribi, featuring a petroleum terminal with a planned capacity of 230,000 cubic metres for gasoline, kerosene, and diesel, along with storage for 40,000 metric tons of liquefied petroleum gas. The Kribi project looks to doubling SCDP’s current liquid fuel storage capacity to around 490,000 cubic metres, with large boost on domestic LPG storage. A nother 250,000 cubic metre storage project has been earmarked d by CSTAR Tank Farm Project Management, a company owned by Ariana Energy (49%), Tradex (31%), and Cameroon’s National Hydrocarbons Corporation (20%).
