Dangote Commits $400 Million for Equipment to Fast-Track Refinery Expansion

In an effort to expedite the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day, creating the largest refinery in the world, the Dangote Group has inked a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd., one of China’s top producers of construction machinery.
To support current and upcoming projects in the fields of agricultural, petrochemicals, refining, and large-scale infrastructure development, the agreement will allow the Group to purchase a greater variety of cutting-edge construction equipment. The refinery expansion is anticipated to be finished in three years, and the new equipment will supplement the current assets.
The expansion effort will boost polypropylene production from 900,000 metric tonnes year to 2.4 million metric tonnes annually, in addition to refining. The Group’s position as the world’s top urea producer will be reinforced by the tripling of Nigeria’s urea capacity from 3 million to 9 million metric tonnes annually, in addition to Ethiopia’s 3 million metric tonnes annually.

Additionally, the Group will boost its production capacity for Linear Alkyl Benzene (LAB) to 400,000 metric tonnes annually, making it the biggest producer in Africa and bolstering supply to the detergent and cleaning agent manufacturing sector. The expansion scheme also includes additional capacity for base oil production.
The Group characterized the deal in a statement as a strategic investment meant to expand its building footprint and accelerate its goal of becoming a $100 billion business by 2030.
“We will greatly improve project execution with the additional equipment we are purchasing through this relationship. By making this investment, we are setting ourselves up to become the world’s top construction company,” the statement read.
As the Dangote Group moves closer to its long-term goal of creating a $100 billion company by 2030, it is expediting its growth and the development of regional markets.