Dangote Secures $400M XCMG Deal to Accelerate Refinery Expansion

Dangote Group has finalized a strategic $400 million equipment agreement with China’s Xuzhou Construction Machinery Group (XCMG), one of the world’s foremost manufacturers of construction and heavy-duty machinery. This partnership will provide advanced equipment to fast-track the ambitious expansion of the Dangote Petroleum Refinery and Petrochemicals complex.

Currently operating at 650,000 barrels per day since commencing production in 2024, the $20 billion facility is targeted to reach 1.4 million barrels per day within the next three years, positioning it as one of the largest refineries globally. The new heavy-duty machinery will complement existing assets, enhancing execution across multiple high-impact projects in refining, petrochemicals, agriculture, and infrastructure development.

Key elements of the expansion include:

– Increasing polypropylene production capacity from 900,000 to 2.4 million tons per year.
– Tripling urea output in Nigeria to 9 million tons annually, combined with the existing 3 million-ton plant in Ethiopia, establishing Dangote as the world’s largest urea producer.
– Boosting linear alkyl benzene (a vital detergent raw material) to 400,000 tons per year, making Dangote Africa’s leading supplier.
– Adding significant base-oil production capacity.

Dangote Group views this investment as a pivotal step toward its goal of becoming a $100 billion enterprise by 2030. The enhanced capabilities will drive greater efficiency and scale in project delivery.

Once fully expanded, the refinery is poised to substantially reduce Nigeria’s reliance on imported refined fuels while transforming fuel supply dynamics across West and Central Africa, reinforcing energy security and industrial self-sufficiency on the continent. This landmark collaboration with XCMG underscores Dangote’s commitment to leveraging global partnerships for transformative growth in Africa’s energy sector.