The Dangote Group has entered into a $400 million agreement with China-based XCMG Construction Machinery Company Limited to boost the expansion of its petroleum refining and industrial operations.
The deal, which focuses on the supply of advanced construction equipment, is expected to accelerate work on the expansion of the Dangote Petroleum Refinery & Petrochemicals, increasing its capacity from 650,000 barrels per day to 1.4 million barrels per day. Once completed, the facility is projected to become the largest oil refinery in the world.
In a statement issued on Monday, the Group said the newly acquired equipment would strengthen execution across several ongoing and planned projects, including refining, petrochemicals, agriculture, and large-scale infrastructure development.
The expansion programme is expected to be completed within the next three years.
According to the company, the agreement forms part of a broader strategy to deepen its construction capabilities and support its long-term goal of building a $100 billion enterprise by 2030.
Commenting on the development, the Group noted that the additional equipment would significantly improve project delivery and operational efficiency. It added that the investment would further position the company to compete globally in construction and industrial development.
Beyond refinery expansion, the Group disclosed plans to significantly scale up its petrochemical and fertiliser operations.
Polypropylene production capacity is set to rise from 900,000 metric tonnes per annum to 2.4 million metric tonnes, while urea output in Nigeria will increase from 3 million to 9 million metric tonnes annually, in addition to existing capacity in Ethiopia. These upgrades are expected to reinforce the Group’s position as the world’s largest urea producer.
Production of Linear Alkyl Benzene will also be expanded to 400,000 metric tonnes per year, strengthening supply for Africa’s detergent and cleaning products industry. Additional base oil production capacity is also included in the expansion plan.
The announcement comes weeks after the refinery confirmed it had reached its current nameplate capacity of 650,000 barrels per day, with the ability to produce up to 75 million litres of petrol daily. In January, the refinery supplied over 40 million litres of petrol per day, accounting for about 62 percent of Nigeria’s domestic market and surpassing fuel imports during the period.
