Dangote Signs $400m Equipment Deal To Fast Track Refinery Expansion

Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd., one of China’s leading manufacturers of construction machinery, in a move set to accelerate the expansion of Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day.

The move is expected to position it to become the largest refinery in the world. A statement yesterday said the agreement would enable the Group acquire additional wide range of advanced construction equipment to support ongoing and forthcoming projects across refining, petrochemicals, agriculture and large-scale infrastructure development.

The new equipment will complement existing assets deployed for the refinery expansion, which is expected to be completed within three years. Beyond refining, the expansion programme will see polypropylene production increase from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.

Urea capacity in Nigeria will be tripled from three million to nine million metric tonnes per annum, in addition to the three million metric tonnes per annum capacity in Ethiopia, strengthening the Group’s position as the largest urea producer globally.

Production capacity for Linear Alkyl Benzene (LAB) will also be increased to 400,000 metric tonnes per annum, positioning the Group as the largest producer in Africa and strengthening supply to the detergent and cleaning agents manufacturing industry.

Additional base oil production capacity also forms part of the broader expansion programme. The Group in the statement described the agreement as a strategic investment aimed at deepening its construction footprint and accelerating its ambition to build a $100 billion enterprise by 2030.