Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd., one of China’s leading manufacturers of heavy machinery, to accelerate the expansion of the Dangote Petroleum Refinery from 650,000 barrels per day (bpd) to 1.4 million bpd.
In a statement on Monday, the company said the expansion will position the facility as the largest refinery in the world upon completion.
Under the agreement, Dangote disclosed that it will acquire a wide range of advanced construction equipment to support ongoing and upcoming projects spanning refining, petrochemicals, agriculture, and large-scale infrastructure development.
“The new fleet will complement existing machinery already deployed for the refinery upgrade, which is projected to be completed within three years.
“Beyond refining capacity, the programme will significantly scale up petrochemical and fertiliser output. Polypropylene production is set to rise from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum. Urea production capacity in Nigeria will be tripled from 3 million to 9 million metric tonnes per annum, in addition to the existing 3 million metric tonnes per annum capacity in Ethiopia—further consolidating the Group’s position as the world’s largest urea producer.
“Production of Linear Alkyl Benzene (LAB) will increase to 400,000 metric tonnes per annum, positioning the company as Africa’s largest producer and strengthening supply to detergent and cleaning product manufacturers. The expansion programme also includes additional base oil production capacity.
The Group described the agreement as a strategic investment designed to deepen its construction capabilities and accelerate 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.
“The Group is currently intensifying expansion efforts and regional market development as it advances toward its long-term vision of becoming a $100 billion enterprise by 2030,” it said.
