Home » Dangote Signs $350M Deal to Double Refinery Capacity

Dangote Signs $350M Deal to Double Refinery Capacity

By Ayomide Otitoju

Dangote Group has signed a $350 million-plus contract with India’s state-owned Engineers India Limited (EIL) to expand its refinery from 650,000 barrels per day to 1.4 million barrels per day.

The expansion will include the addition of a second processing train, focusing on the production of Euro VI–compliant fuels. Under the agreement, EIL will serve as both Project Management Consultant (PMC) and Engineering, Procurement, and Construction Management (EPCM) consultant, a role it previously played during the delivery of the current 650,000 bpd refinery, commissioned in 2024.

The project will also significantly scale up petrochemical output. Dangote plans to increase polypropylene production from 830,000 tonnes per year to 2.4 million tonnes by revamping its existing unit, installing an additional 1.2 million-tonne unit, and adding a 750,000-tonne UOP Oleflex unit to boost propylene feedstock supply.

EIL described the renewed engagement as a reflection of confidence in its technical and project delivery capabilities. “Believing in EIL’s engineering and project management excellence, Dangote Group has once again joined hands with EIL in this endeavor,” the company said.

Once completed, the expansion will make Dangote the world’s largest petroleum refinery, strengthen fuel production in Africa, reduce reliance on imports, and support regional energy security. “The proposed expansion to 1.4 million barrels per day is a project of global significance and will stand among the largest refinery complexes at a single location,” EIL added.

Dangote Group said it will leverage decades of experience and a global execution model to deliver the project. Aliko Dangote, in a recent interview with S&P Global, confirmed plans to double the refinery’s capacity and said the company is exploring new financing options and partnerships with Middle Eastern investors.

In December 2025, Dangote also announced plans to list a 10% stake in the refinery on the Nigerian Exchange in 2026.

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