By Ayomide Otitoju
Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd. to support the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day.
The expansion, once completed within the next three years, is expected to position the refinery as the largest in the world.
Under the agreement, the Group will acquire a wide range of advanced construction equipment to drive ongoing and upcoming projects across refining, petrochemicals, agriculture and large-scale infrastructure. The new assets will complement existing equipment deployed for the refinery upgrade.
Beyond refining, the expansion programme includes increasing polypropylene production from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum. Urea capacity in Nigeria will also 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, reinforcing the Group’s position as the world’s largest urea producer.
Linear Alkyl Benzene (LAB) production capacity is set to rise to 400,000 metric tonnes per annum, positioning the company as Africa’s largest producer and boosting supply to detergent and cleaning agents manufacturers. Additional base oil production capacity is also part of the broader expansion plan.
In a statement, the Group described the agreement as a strategic investment aimed at strengthening its construction capabilities 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. With this investment, we are positioning ourselves to become the number one construction company in the world,” the statement said.
The conglomerate said it is accelerating expansion and regional market development as it advances toward its long-term growth target.
