The Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd. as part of plans to fast-track the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day (bpd) to 1.4 million bpd.
The move positions the refinery to potentially become the largest in the world once the expansion is completed.
According to the company, the newly acquired equipment will support ongoing and upcoming projects across refining, petrochemicals, agriculture, and large-scale infrastructure development. The refinery expansion is expected to be completed within three years.
Beyond crude processing capacity, the expansion programme includes a significant boost in petrochemical output. Polypropylene production is set to rise from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.
Urea production in Nigeria will triple from 3 million to 9 million metric tonnes per annum. Combined with its existing 3 million metric tonnes per annum capacity in Ethiopia, the Group says this will further consolidate its position as the world’s largest urea producer.
Production of Linear Alkyl Benzene (LAB) will increase to 400,000 metric tonnes per annum, strengthening supply to detergent and cleaning agents manufacturers across Africa. Additional base oil production capacity also forms part of the broader expansion strategy.
In a statement, the company described the agreement as a strategic investment aimed at deepening its construction footprint and accelerating its ambition of building a $100 billion enterprise by 2030.
“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects. With this investment, we are positioning ourselves to become the number one construction company in the world,” the statement said..
