The Dangote Group has signed a $400 million equipment supply agreement with XCMG Construction Machinery Company Limited to speed up the expansion of the Dangote Petroleum Refinery & Petrochemicals.
The partnership will support the refinery’s planned scale-up from 650,000 barrels per day (bpd) to 1.4 million bpd. Once completed, the facility could rank as the largest single-train refinery in the world.
What the $400m Deal Covers
Dangote Group said the agreement allows it to acquire advanced construction equipment to drive ongoing and future projects. These projects span refining, petrochemicals, fertiliser production, agriculture, and large-scale infrastructure.
The company expects to complete the refinery expansion within three years.
In a statement released Monday, the group described the deal as a strategic investment that will strengthen its construction capacity and execution speed.
“The additional equipment will significantly boost delivery across our projects. This investment strengthens our ambition to become a global construction leader,” the company stated.
For more on XCMG’s global operations, visit: XCMG.COM
Expansion Beyond Refining
Dangote’s growth plan extends beyond crude processing.
The expansion will increase polypropylene production from 900,000 metric tonnes per year to 2.4 million metric tonnes. This move aims to deepen Nigeria’s petrochemical value chain and reduce imports.
The group will also triple urea production in Nigeria from 3 million to 9 million metric tonnes annually. It already operates an additional 3 million metric tonnes capacity in Ethiopia. This scale strengthens its position as one of the world’s largest fertiliser producers.
Production of Linear Alkyl Benzene (LAB), a key ingredient in detergents, will rise to 400,000 metric tonnes annually. That increase could make Dangote Africa’s largest LAB producer.
The expansion plan also includes additional base oil production capacity.
Refinery Market Impact
The refinery recently confirmed it operates at its current nameplate capacity of 650,000 bpd. It now produces up to 75 million litres of petrol daily.
In January, the facility supplied over 40 million litres of petrol per day. That output captured 62 percent of Nigeria’s petrol market, surpassing fuel importers.
Industry analysts say sustained expansion could further reduce fuel imports, stabilise supply, and improve foreign exchange conservation.
$100bn Vision by 2030
Dangote Group continues to pursue its long-term goal of building a $100 billion enterprise by 2030. The refinery expansion forms a core pillar of that strategy.
With fresh capital investment and expanded production targets, the conglomerate signals aggressive growth across energy, manufacturing, and infrastructure.
As Africa’s largest industrial group pushes forward, market watchers will closely track how quickly it delivers on its ambitious refinery scale-up.
