Dangote Signs $400M Equipment Deal for Refinery and Petrochemical Expansion
Dangote Group has secured a $400 million agreement with China's XCMG Construction Machinery Co. to acquire advanced equipment, aiming to fast-track its petroleum refinery expansion and boost petrochemical capacity. This investment will nearly double the refinery's capacity to 1.4 million barrels per day, positioning it as the world's largest. Additionally, it will significantly increase production of polypropylene, urea, and linear alkyl benzene, reinforcing Dangote's global leadership in urea and Africa's largest producer of LAB, aligning with its $100 billion enterprise goal by 2030.
The Dangote Group has announced a significant $400 million agreement with China's XCMG Construction Machinery Co., Ltd. for advanced construction equipment, marking a strategic move to accelerate the expansion of its petroleum refinery and broader industrial footprint. This substantial investment is earmarked to support the ambitious expansion of the Dangote Petroleum Refinery and Petrochemicals, which is set to nearly double its processing capacity from 650,000 barrels per day to an impressive 1.4 million barrels per day. This scale, once achieved within the projected three-year timeline, is expected to position it as the largest refinery globally.Beyond the refinery, the deal will profoundly impact Dangote's petrochemical production. Polypropylene output is slated to surge from 900,000 metric tonnes to 2.4 million metric tonnes annually. Nigeria's urea production capacity will triple from 3 million to 9 million metric tonnes per year, solidifying Dangote Group's status as the world’s largest urea producer when combined with its Ethiopian operations. Furthermore, the group plans to expand its linear alkyl benzene (LAB) production to 400,000 metric tonnes per year, establishing itself as Africa’s largest LAB producer, vital for detergent manufacturing. This expansion, which also includes additional base oil capacity, aligns with Dangote Group's long-term vision to build a $100 billion enterprise by 2030, leveraging large-scale industrial projects and regional market expansion. The company views this agreement as a pivotal step towards strengthening its construction capabilities and becoming a global leader in the construction sector.
