Dangote inks $400m deal with China’s XCMG to power mega refinery expansion

By Editor

Dangote Group has signed a $400 million construction equipment agreement with XCMG Construction Machinery Co., Ltd., in a strategic move aimed at fast-tracking the expansion of the Dangote Petroleum Refinery & Petrochemicals.

The deal is designed to support the planned scale-up of the refinery’s processing capacity from 650,000 barrels per day to 1.4 million barrels per day, a milestone that would position the facility as the largest single-train refinery in the world.

Under the agreement, Dangote Group will acquire a broad range of advanced construction equipment to support current and upcoming projects spanning refining, petrochemicals, agriculture and large-scale infrastructure. The new fleet will complement existing machinery deployed at the Lekki complex, with the refinery expansion expected to be completed within three years.

Beyond refining, the expansion programme will significantly boost petrochemical and fertiliser output. Polypropylene production capacity will rise from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum, while urea production in Nigeria will triple from 3 million to 9 million metric tonnes per annum. This is in addition to the Group’s 3 million metric tonnes per annum urea capacity in Ethiopia, consolidating its position as the world’s largest urea producer.

The programme also includes an increase in Linear Alkyl Benzene (LAB) production capacity to 400,000 metric tonnes per annum, reinforcing Dangote Group’s leadership in Africa and strengthening supply to detergent and cleaning products manufacturers. Additional base oil capacity is also part of the wider expansion blueprint.

In a statement, the Group described the agreement as a strategic investment aimed at deepening its construction capabilities and accelerating progress toward its long-term ambition of building a $100 billion enterprise by 2030.

“The additional equipment we are acquiring through 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.

Dangote Group continues to intensify expansion and regional market development as it advances toward its 2030 growth target.