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Dangote signs $400m agreement with Chinese machinery giant
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Refinery capacity to rise from 650,000 to 1.4 million barrels per day
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Urea, polypropylene, LAB output also set for major expansion
The Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd. to accelerate the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day.
The expansion is expected to position the refinery as the largest in the world upon completion.
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Under the agreement, the Group will acquire a wide range of advanced construction equipment to support ongoing and upcoming projects across refining, petrochemicals, agriculture and large-scale infrastructure development. The new equipment will complement existing assets deployed for the refinery expansion, which is projected to be completed within three years.
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Beyond refining, the programme includes a significant scale-up in petrochemical production. Polypropylene output will increase from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.
Nigeria’s urea production capacity under the Group will triple 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 strengthening its position as the world’s largest urea producer.
Production capacity for Linear Alkyl Benzene (LAB) will also rise to 400,000 metric tonnes per annum, positioning the company as Africa’s largest producer and boosting supply to detergent and cleaning agent manufacturers. Additional base oil production capacity forms part of the broader expansion plan.
In a statement, the Group described the agreement as a strategic investment aimed at deepening its construction footprint and accelerating its ambition to build 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 conglomerate is currently ramping up expansion and regional market development as it advances toward its long-term vision of becoming a $100 billion enterprise by 2030.