KEY POINTS
- Dangote refinery expansion targets 1.4 million barrels per day.
- $400 million XCMG deal supports refinery construction timelines.
- Expansion boosts polypropylene and urea output capacity.
Dangote Group has agreed a $400 million construction equipment deal with China’s XCMG Construction Machinery Co. Ltd. to accelerate expansion of the Dangote refinery expansion at its flagship energy complex near Lagos.
The agreement adds heavy-duty machinery to support plans to increase capacity at the Dangote Petroleum Refinery and Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day. If completed on schedule, the upgrade would rank the site among the largest refining hubs globally and further reshape fuel supply dynamics in Nigeria and West Africa.
Dangote Refinery Expansion Accelerates
Furthermore, the conglomerate said the equipment will supplement machinery already deployed at the site and help shorten construction timelines. It expects to complete the Dangote refinery expansion within three years, though it did not outline a detailed rollout calendar.
The Dangote refinery expansion extends beyond fuels. The group plans to raise polypropylene output from 900,000 metric tons annually to 2.4 million metric tons, positioning the complex as a major supplier to plastic and packaging manufacturers.
Billionaire Africa says Dangote wants to triple Nigeria’s urea production capacity in fertilizers, from 3 million to 9 million metric tons per year. It also wants to expand 3 million metric tons of capacity in Ethiopia each year, which will strengthen its presence in a sector that affects the world food supply through nitrogen-based fertilizers.
The company said it will increase Linear Alkyl Benzene production to 400,000 metric tons per year, targeting detergent and cleaning product manufacturers across Africa that currently rely heavily on imports. Additional base oil capacity, used in lubricants and industrial fluids, forms part of the broader Dangote refinery expansion, though the company did not disclose volumes.
XCMG Equipment Deal Supports Buildout
XCMG, one of China’s largest construction equipment manufacturers, will supply a range of machinery for use across refining, petrochemicals, agriculture and infrastructure projects. Dangote called the purchase a strategic investment to improve the company’s ability to carry out its plans across its portfolio.
The refinery began operations in 2023 and has ramped up gradually amid early logistical and crude supply constraints. Expansion would also deepen its influence on domestic fuel markets, reduce import dependence and widen export potential.
In conclusion, Dangote linked the deal to its longer-term ambition of building a $100 billion enterprise by 2030, citing improved construction capacity as central to meeting that target.
