Dangote Plans to Double Refinery Capacity to 1.4 Million Barrels Per Day with Middle Eastern Funding
Africa’s richest man, Aliko Dangote, has unveiled bold plans to expand the Dangote Refinery from its current 650,000 barrels per day (bpd) to a massive 1.4 million bpd, a scale that would make it the largest refinery in the world. Speaking with S&P Global, the President of Dangote Group revealed that discussions are underway with Middle Eastern investors to fund the ambitious project. The expansion would solidify Nigeria’s position as a major energy hub and reduce the continent’s dependency on imported petroleum products.
The Dangote Refinery, located in Lekki, Lagos, has already transformed Nigeria into a net exporter of diesel and jet fuel, with local petrol supplies replacing imports from Europe. Dangote described his mission to secure Africa’s energy independence as a “herculean task,” noting that expanding on the existing site makes the most sense. “We already have the infrastructure here,” he said, emphasizing that replicating such facilities elsewhere would be costly and inefficient.
According to S&P Global Commodity Insights, Nigeria’s demand for gasoline is expected to surge, with imports projected to hit nearly 200,000 bpd by 2030 due to economic and population growth. Engineers at the refinery confirmed that the complex was designed for future expansion, with available space to add a second refining system. The potential upgrade could include a vacuum distillation unit to improve production efficiency and output.
Dangote also outlined plans to diversify the company’s petrochemical portfolio, including linear alkylbenzene and base oil projects, while increasing polypropylene capacity from one million to 1.5 million metric tonnes in the coming years. Despite the International Energy Agency’s warning of global refining overcapacity by 2030, Dangote insists that Africa must invest heavily in its own energy infrastructure. “Most African governments lack the capacity to build refineries,” he warned. “Without private investment, the continent will be in trouble.”
To fund this next phase, the Dangote Group recently secured a $4 billion financing agreement and is exploring strategic partnerships in the Middle East. Dangote disclosed that the company plans to list 5–10% of its shares on the Nigerian Stock Exchange within a year, allowing investors to participate in what he calls “Africa’s energy revolution.” Meanwhile, the refinery’s main residue fluid catalytic cracker (RFCC), which went offline in September, has resumed operations and is expected to return to full capacity soon. Dangote confirmed that a month-long maintenance shutdown will follow later this year, carefully scheduled to avoid peak fuel demand during the festive season.
source: punch