Dangote Seals $400m Equipment Deal with XCMG to Accelerate Refinery Expansion

Dangote Seals $400m Equipment Deal with XCMG to Accelerate Refinery Expansion

The Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd in a major step toward accelerating the expansion of the Dangote Petroleum Refinery and Petrochemicals from 650,000 barrels per day (bpd) to 1.4 million bpd.

The expansion, expected to be completed within three years, will position the refinery as the largest in the world upon completion.

According to the Group, the agreement will facilitate the acquisition of a wide range of advanced construction equipment to support ongoing and upcoming projects spanning refining, petrochemicals, agriculture, and large-scale infrastructure development. The newly procured machinery will complement existing assets currently deployed to drive the refinery’s expansion.

Beyond refining, the expansion programme will significantly scale up petrochemical output. Polypropylene production capacity is projected to rise from 900,000 metric tonnes per annum (MTPA) to 2.4 million MTPA. Urea production capacity in Nigeria will also be tripled from 3 million to 9 million MTPA, in addition to the company’s existing 3 million MTPA capacity in Ethiopia. This development is expected to reinforce the Group’s position as the largest urea producer globally.

Similarly, Linear Alkyl Benzene (LAB) production capacity will increase to 400,000 MTPA, strengthening supply to detergent and cleaning agents manufacturers and positioning the company as the largest producer in Africa. The broader expansion plan also includes additional base oil production capacity.

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. With this investment, we are positioning ourselves to become the number one construction company in the world,” the company stated.

The latest deal underscores the Group’s aggressive expansion drive and regional market development strategy as it advances toward its long-term vision of becoming a $100 billion enterprise within the next five years.