Dangote signs $400m equipment deal to fast-track refinery expansion
Kola Oyelere Kano
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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 landmark deal is expected to position the refinery as the largest in the world upon completion.
Under the agreement, Dangote Group will acquire a wide range of advanced construction equipment to support ongoing and upcoming projects across refining, petrochemicals, agriculture and large-scale infrastructure development.
The new machinery will complement existing assets already deployed for the refinery expansion, which is projected to be completed within three years.
Beyond refining, the expansion programme will significantly scale up production capacities across several product lines.
Polypropylene output is set to increase from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.
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Urea production capacity in Nigeria will be tripled from 3 million to 9 million metric tonnes per annum, in addition to the existing 3 million metric tonnes per annum capacity in Ethiopia.
This development will further strengthen the Group’s position as the largest urea producer globally.
Similarly, production capacity for Linear Alkyl Benzene (LAB) will rise to 400,000 metric tonnes per annum, making the company the largest producer in Africa and boosting supply to detergent and cleaning agents manufacturers.
Additional base oil production capacity also forms part of the broader expansion plan.
In a statement, the Group described the agreement as a strategic investment aimed at deepening its construction footprint and accelerating its ambition to build a $100 billion enterprise by 2030.
“The additional equipment we are acquiring under this partnership will significantly enhance execution across our projects.
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With this investment, we are positioning ourselves to become the number one construction company in the world,” the statement said.
Dangote Group is currently accelerating expansion and regional market development as it advances toward its long-term vision of becoming a $100 billion enterprise by 2030.