Dangote signs $400m equipment deal to fast-track refinery expansion

Key Takeaways

• The Dangote Group says it has signed a $400 million construction equipment agreement with XCMG Construction Machinery Company Limited, one of China’s leading manufacturers of construction machinery, in a move set to accelerate the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day, positioning it to become the largest refinery in the world.
• The Dangote Group says it has signed a $400 million construction equipment agreement with XCMG Construction Machinery Company Limited, one of China’s leading manufacturers of construction machinery, in a move set to accelerate the expansion of the Dangote Petroleum Refinery & Petrochemicals from 650,000 barrels per day to 1.4 million barrels per day, positioning it to become the largest refinery in the world.The agreement, it was stated, will enable the group to acquire an additional wide range of advanced construction equipment to support ongoing and forthcoming projects across refining, petrochemicals, agriculture and large-scale infrastructure development.In a statement on Monday, the Dangote Group said the new equipment will complement existing assets deployed for the refinery expansion, which is expected to be completed within three years.In the statement, the group described the agreement as a strategic investment aimed at deepening its construction footprint and accelerating its ambition to build a $100bn 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 statement partly read.“Beyond refining, the expansion programme will see polypropylene production increase from 900,000 metric tonnes per annum to 2.4 million metric tonnes per annum.