By By Elizabeth Ugbo
Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd. in Nigeria to accelerate the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day, a move that will position the facility as the largest refinery in the world within the next three years.
Strategic Equipment Acquisition
The agreement enables Dangote Group to acquire advanced construction equipment for ongoing and upcoming projects. These projects span refining, petrochemicals, agriculture and large-scale infrastructure development.
In addition, the new machinery will strengthen existing assets already deployed for the refinery upgrade. The company expects to complete the expansion within three years.
Boost to Petrochemical Production
Beyond crude refining, the expansion will significantly increase petrochemical output. Polypropylene production will rise from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.
This increase will strengthen local manufacturing and reduce import dependence. It will also create new export opportunities across Africa and beyond.
Expansion of Urea and Fertiliser Capacity
Furthermore, Dangote Group will triple Nigeria’s urea capacity from 3 million to 9 million metric tonnes per annum. The company will maintain its additional 3 million metric tonnes per annum capacity in Ethiopia.
As a result, the Group will reinforce its position as the largest urea producer globally. This growth will support food security and agricultural productivity.
Increased LAB and Base Oil Production
The company will also raise Linear Alkyl Benzene production to 400,000 metric tonnes per annum. This move will make Dangote the largest LAB producer in Africa.
Consequently, detergent and cleaning product manufacturers will enjoy improved supply stability.
Additionally, the broader expansion programme includes increased base oil production capacity to meet rising demand.
Vision for a $100 Billion Enterprise
Dangote Group described the deal as a strategic investment that deepens its construction footprint. The company aims to build a $100 billion enterprise by 2030.
According to the statement, the new equipment will enhance project execution across all business segments. The Group also reaffirmed its ambition to become the number one construction company in the world.
Meanwhile, Dangote continues to accelerate regional market expansion to achieve its long-term growth targets.
