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 once completed. The project is scheduled for completion within three years.
Under the agreement, the Group 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 newly acquired machinery will complement existing assets currently deployed at the refinery site as work intensifies on the expansion programme.
Beyond refining, polypropylene production will rise from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum, significantly boosting domestic and export capacity.
Nigeria’s urea production capacity under the Group will triple from 3 million to 9 million metric tonnes per annum. Combined with its existing 3 million metric tonnes per annum capacity in Ethiopia, the company is set to consolidate its position as the largest urea producer globally.
Production capacity for Linear Alkyl Benzene (LAB) will also increase to 400,000 metric tonnes per annum, strengthening supply to detergent and cleaning agents manufacturers and positioning the Group as Africa’s largest producer.
Additional base oil production capacity forms part of the broader expansion strategy.
In a statement, the company described the deal as a strategic investment aimed at deepening its construction footprint and advancing 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.
