Dangote Group and XCMG Ink $400M Deal to Boost Oil Refinery Expansion

Dangote Group has signed a $400 million equipment deal with China's Xuzhou Construction Machinery Group to enhance its oil refinery expansion. The agreement is set to boost refinery capacity to 1.4 million barrels per day and elevate Dangote as a leading player in petrochemicals and urea production.

Nigeria's Dangote Group has solidified a $400 million equipment agreement with China's Xuzhou Construction Machinery Group, aiming to accelerate its oil refinery's expansion to a capacity of 1.4 million barrels per day. The equipment will bolster ongoing developments in refining, petrochemicals, agriculture, and infrastructure sectors.

The XCMG partnership empowers Dangote to access diverse heavy-duty machinery, enriching current assets for the refinery's build-out, expected within three years. Polypropylene capacity is projected to soar from 900,000 to 2.4 million tons annually, while urea production in Nigeria will triple to 9 million tons per year, positioning Dangote as the globe's largest urea producer.

Moreover, Dangote will enhance linear alkyl benzene output to 400,000 tons annually, becoming Africa's preeminent supplier. The conglomerate's base-oil capacity expansion is also in the plans. The strategic deal supports Dangote's ambition to evolve into a $100 billion enterprise by 2030, cutting Nigeria's reliance on imported refined fuel and transforming the regional fuel supply landscape.