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Dangote Group has entered a USD 400 million equipment deal with China's XCMG to accelerate the expansion of its oil refinery to 1.4 million barrels per day. The agreement provides new heavy machinery for projects in refining, petrochemicals, agriculture, and infrastructure. The refinery's expansion will boost polypropylene to 2.4 million tons per year, triple Nigeria's urea production to 9 million tons annually, and increase linear alkyl benzene output to 400,000 tons. The move supports Dangote's strategic goal of becoming a USD 100 billion company by 2030 while reducing Nigeria's dependence on imported fuel.
Nigeria's Dangote Group has finalized a USD 400 million equipment agreement with China's Xuzhou Construction Machinery Group (XCMG) to accelerate the growth of its oil refinery toward a target of 1.4 million barrels per day. The deal is set to provide new heavy-duty machinery to support ongoing projects across refining, petrochemicals, agriculture, and infrastructure. Advertisement
The company indicated that the XCMG partnership will expand its existing asset base, boosting execution capacity for the refinery, which is expected to be fully completed within three years. Under the expansion plan, polypropylene production will increase to 2.4 million tons per year from 900,000 tons, while Nigeria's urea output will triple to 9 million tons annually. Combined with an existing 3 million-ton facility in Ethiopia, this will make Dangote the world's largest urea producer.
The refinery's production of linear alkyl benzene, an essential raw material for detergents, will rise to 400,000 tons per year, positioning Dangote as Africa's largest supplier. Plans for additional base-oil capacity are also included in the programme.
Dangote Group described the transaction as a strategic investment that aligns with its goal of becoming a USD 100 billion enterprise by 2030. The company highlighted that the additional machinery will greatly improve efficiency and execution across its multiple projects.
Owned by Nigerian billionaire Aliko Dangote, the refinery, which cost USD 20 billion, commenced operations in 2024 after multiple delays. Once fully operational, it is expected to significantly cut Nigeria's reliance on imported refined fuel and reshape fuel supply dynamics across West and Central Africa.
Source Reuters
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