Dangote Group Signs $400m Deal to Expand Refinery to 1.4m Barrels Per Day
- Dangote Group signed a $400 million construction equipment agreement with XCMG to support refinery expansion
- The refinery’s capacity is expected to increase from 650,000 barrels per day to 1.4 million barrels per day
- Polypropylene, urea and Linear Alkyl Benzene production capacities will also increase significantly
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Company Limited to support the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day (bpd) to 1.4 million bpd.
The group disclosed this in a statement on Monday, noting that the deal will facilitate the acquisition of additional advanced construction equipment for ongoing and upcoming projects across refining, petrochemicals, agriculture and large-scale infrastructure development.
Source: UGC
According to the company, the new equipment will complement existing assets deployed for the refinery expansion project, which is expected to be completed within three years, PUNCH reported.
The group described the agreement as a strategic investment aimed at strengthening its construction capabilities and advancing its goal 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 partly read.
Refinery Expansion and Production Targets
The Dangote refinery recently announced that it had reached its current nameplate capacity of 650,000 barrels per day and now has the capacity to produce up to 75 million litres of petrol daily.
In January, the refinery supplied more than 40 million litres of petrol per day, accounting for 62% of market share, according to figures released by the company.
Beyond refining, the expansion programme will also increase polypropylene production from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.
Urea production capacity in Nigeria is expected to rise from 3 million to 9 million metric tonnes per annum, in addition to the existing 3 million metric tonnes per annum capacity in Ethiopia. The group said this would reinforce its position as the largest urea producer globally.
Source: Getty Images
The company also plans to expand production capacity for Linear Alkyl Benzene to 400,000 metric tonnes per annum, positioning it as the largest producer of the product in Africa and strengthening supply to detergent and cleaning manufacturers. Additional base oil production capacity is also included in the broader expansion plan.
The group added that it is accelerating regional market development as it works towards its long-term growth target.
Dangote refinery announces price reduction again
Legit.ng earlier reported that the Dangote Petroleum Refinery has reduced its Automotive Gas Oil (AGO) gantry price to N880 per litre.
The latest price cut is a N30 reduction from the previous rate of N910 per litre.
The move by Dangote refinery will help to ease operating costs for factories and small businesses.
Source: Legit.ng
