The Dangote Refinery is set to double its refining capacity to 1.4 million barrels per day (b/d) within the next three years, according to the company’s president, Aliko Dangote.
Speaking to S&P Global, Mr Dangote confirmed that plans are underway to expand the facility, which currently has a nameplate capacity of 650,000 b/d.
The refinery, located in Lekki, Lagos State, is undergoing upgrades expected to raise output to 700,000 b/d by the end of the year.
Meanwhile, the plant has yet to reach full operational capacity of 650,000 b/d due to technical challenges.
“In July, Dangote unveiled plans to expand the refinery from its current 650,000 b/d to 700,000 b/d by the end of the year. Now, the target is to reach 1.4 million b/d,” S&P Global stated in its report.
However, engineers say the existing Lekki plant was designed with expansion in mind, as there are vacant plots that could accommodate a second refining system.
If completed, the expansion would make Dangote Refinery the largest in the world, surpassing India’s Jamnagar facility, which has a capacity of 1.36 million b/d.
The company also plans to switch entirely to Nigerian crude by the end of 2025, potentially ending its reliance on imported feedstock from the United States and other countries.
Stock market listing and strategic partnerships
Mr Dangote revealed that the refinery will be listed on the Nigerian Stock Exchange next year, later than the June timeline previously announced by the Nigerian Exchange Group.
Between 5% and 10% of shares will be offered initially, with further sales dependent on investor demand.
“We don’t want to keep more than 65% to 70%,” he said, adding that the company is exploring strategic partnerships with Middle Eastern investors to support the $19bn facility’s expansion.
“Our business concept is going to change. Now instead of being 100% Dangote-owned, we’ll have other partners,” he said.
The Dangote Group has also announced plans to build a $2.5bn refinery in Ethiopia.
Additional projects include a tank farm in Namibia and a new petrochemicals facility in China, as part of the company’s broader push into global energy markets.
[…] comes just days after Aliko Dangote, the chairman of the Dangote Group said the company will expand its refinery capacity from 650,000 b/d to 1.4m b/d by […]
[…] Dangote, Chairman of Dangote Group, recently announced plans to double its capacity to 1.4m b/d over the next three […]