Dangote Seals $400m Deal With China’s XCMG to Double Refinery Capacity
The Dangote Group has signed a $400 million equipment supply agreement with Chinese heavy-machinery giant XCMG as part of an ambitious expansion of its Dangote Petroleum Refinery in Lagos.
The strategic partnership is designed to scale up the refinery’s production capacity from its current 650,000 barrels per day (bpd) to an estimated 1.4 million barrels per day upon completion; a move that would position the facility among the largest single-site refineries globally by daily output.
According to the company, the newly procured equipment will strengthen refining operations and support the broader development of petrochemical and industrial infrastructure tied to the refinery. Beyond core refining activities, the machinery will also bolster petrochemical processing, agriculture-related machinery initiatives, and other infrastructure projects across Dangote’s expanding business portfolio.
Central to the three-year expansion blueprint is a significant boost in polypropylene production. The group is targeting an annual output of 2.4 million tonnes, reinforcing its push into petrochemicals. Polypropylene; a widely used plastic material found in packaging, containers, automotive parts, and household products remains a critical input in multiple industries. Increased production is expected to enhance both local supply and export competitiveness.
The expansion forms a key pillar of Dangote Group’s broader strategy to deepen Nigeria’s downstream oil and gas value chain, reduce reliance on fuel imports, and strengthen the country’s industrial base.
Blessing Anolaba
Editorial & Creative Correspondent
A storyteller and journalist passionate about telling stories for policy change and impact.
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