Dangote Finalizes $400m Equipment Agreement to Boost Refinery Expansion

Dangote finalizes a $400 million agreement with XCMG to accelerate the expansion of its refinery to 1.4 million barrels per day, aiming for leadership in the global industry.

The Dangote Group has entered into a $400 million agreement for construction equipment with XCMG Construction Machinery Co., Ltd. This strategic partnership is designed to expedite the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day.

The expansion is anticipated to be finalized within three years, ultimately establishing the refinery as the largest globally when fully operational.

According to the agreement, the Group will obtain a diverse array of advanced construction equipment to assist with current and future projects in refining, petrochemicals, agriculture, and large-scale infrastructure development. The recently acquired equipment will enhance the existing assets currently utilized for the refinery’s expansion efforts.

The expansion programme encompasses not only crude refining but also a substantial increase in petrochemical production. The capacity for polypropylene is set to increase from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.

The urea production capacity in Nigeria is set to increase from 3 million to 9 million metric tonnes per annum, alongside the Group’s existing capacity of 3 million metric tonnes per annum in Ethiopia, thereby reinforcing its status as the largest urea producer in the world.

The production of Linear Alkyl Benzene (LAB) is set to rise to 400,000 metric tonnes per annum, enhancing supply to the detergent and cleaning agents industry and establishing the Group as Africa’s largest producer of this product. The production capacity for additional base oil is an integral component of the overall expansion strategy.

The Group characterized the agreement as a strategic investment aimed at expanding its construction presence and accelerating its goal of establishing a $100 billion enterprise by 2030.

“The extra equipment we are obtaining through this partnership will greatly improve execution across our projects. “This investment positions us to become the leading construction company globally,” the statement indicated.

The Dangote Group has indicated that it is ramping up its efforts in expansion and regional market development as it progresses with its long-term strategy for industrial and infrastructure growth.