Dangote refinery expansion: Group signs $400m XCMG deal to double refinery output and strengthen petrochemicals, urea, and base oil capacity

The Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Company Limited, aiming to accelerate the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day.

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The agreement will enable the group to acquire a wide range of advanced construction equipment to support ongoing and future projects across refining, petrochemicals, agriculture, and large-scale infrastructure.

The refinery expansion is expected to be completed within three years.

“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 group said in a statement on Monday.

The deal complements existing assets deployed for the refinery and reflects a strategic investment aimed at deepening the group’s construction footprint and advancing its ambition to build a $100 billion enterprise by 2030.

The expansion programme will also boost polypropylene production from 900,000 to 2.4 million metric tonnes per annum.

Urea capacity in Nigeria will triple from 3 million to 9 million metric tonnes per annum, alongside 3 million metric tonnes per annum capacity in Ethiopia, strengthening the group’s position as the world’s largest urea producer.

Production of Linear Alkyl Benzene will rise to 400,000 metric tonnes per annum, making the Dangote Group the largest producer in Africa and supporting the detergent and cleaning agents manufacturing sector.

Additional base oil production capacity is also part of the expansion plan.

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The Dangote refinery recently reached its current nameplate capacity of 650,000 barrels per day, supplying 75 million litres of petrol daily. In January, the refinery supplied over 40 million litres of petrol per day, capturing 62 per cent of Nigeria’s market share.