Dangote Group Invests $400 Million in Equipment to Expand Refinery and Boost Petrochemical Output

Dangote Group has taken a major step to accelerate its industrial ambitions, signing a $400 million agreement with China’s XCMG Construction Machinery Co., Ltd. to acquire state-of-the-art construction equipment. The move is aimed at fast-tracking the expansion of the Dangote Petroleum Refinery and other industrial projects, signaling a bold push to scale up Nigeria’s energy and petrochemical production.

The refinery, currently producing 650,000 barrels per day, is set to more than double its capacity to 1.4 million barrels per day, which would make it the largest refinery in the world once completed. Dangote Group said the new equipment will enhance construction capabilities not just in refining, but also across its petrochemical, agricultural, and infrastructure ventures. The company anticipates completing the expansion within three years.

Beyond crude oil processing, the expansion plan includes a significant increase in petrochemical output. Polypropylene production will jump from 900,000 metric tonnes to 2.4 million metric tonnes per year, while Nigeria’s urea production capacity will triple from 3 million to 9 million metric tonnes annually. Combined with Dangote’s existing 3 million tonnes capacity in Ethiopia, the group is poised to strengthen its position as the world’s largest urea producer.

The company will also grow its production of linear alkyl benzene (LAB) to 400,000 metric tonnes per year, securing supplies for detergent and cleaning product manufacturers and establishing itself as Africa’s leading producer of the industrial chemical. Additional base oil production capacity is also included in the expansion strategy, reinforcing Dangote Group’s ambition to dominate multiple segments of the industrial market.

Describing the agreement as a strategic investment, Dangote Group emphasized that the equipment acquisition will enhance project execution and accelerate long-term growth. “With this investment, we are positioning ourselves to become the number one construction company in the world,” the company said, highlighting its broader goal of building a $100 billion enterprise by 2030 through large-scale industrial projects and regional market expansion.

source: business day