Nigeria’s Dangote Industries Ltd. plans to expand its crude processing capacity of subsidiary Dangote Refinery & Petrochemical Co.’s (DRPC) 650,000-b/d integrated refining complex in the Lekki Free Trade Zone near Lagos by 750,000 b/d in a move that would make it the world’s largest single-site refinery complex.
Once completed, the expansion would more than double the refinery’s current throughput capacity to 1.4 million b/d, the operator said in an Oct. 26 post to Dangote Group’s official X account.
The proposed expansion represents the latest phase in Dangote’s downstream investment strategy and aligns with Nigerian government initiatives aimed at domestic refining and energy self-sufficiency, according to the operator.
The refinery currently produces diesel, aviation fuel, LPG, and is progressing toward full gasoline output.
In addition to crude distillation capacity, the project would also expand associated petrochemical operations, including boosting polypropylene production by 900,000 tonnes/year (tpy) to 2.4 million tpy, as well as accommodating new output of base oils and linear alkylbenzene feedstocks used in detergent manufacturing.
The company said it also plans to upgrade its fuel output to conform to Euro 6-quality standards.
Dangote credited the Nigerian government and President Bola Ahmed Tinubu for policies that have supported domestic refining, including the “Nigeria’s First,” “Naira-for-Crude,” and “One-Stop Shop” initiatives, measures which collectively aim to prioritize local crude supply to Nigerian refineries, streamline licensing, and promote industrial investment.
In tandem with the expansion announcement, the operator confirmed Nigeria’s federal government also recently intervened to resolve operational disruptions at the refinery related to labor actions and security incidents, noting that such coordination was critical in maintaining refinery uptime and protecting production targets.
According to Dangote, the expansion will create about 65,000 jobs during construction and contribute to Nigeria’s industrial base through local procurement and workforce participation. The company said 85% of the project’s workforce will be Nigerian, supported by training and technology transfer programs.
By displacing imports of refined products, Dangote said the project is expected to save billions of dollars annually in foreign exchange and strengthen Nigeria’s energy security. Once the project is completed, Nigeria could become a net exporter of refined fuels and petrochemicals to regional markets, according to the operator.
Aliko Dangote, president of Dangote Group said the proposed project demonstrates Africa’s growing capacity to finance, construct, and operate large-scale energy infrastructure, positioning the continent as a potential refining hub, encouraging other Nigerian production license holders—of which about 30 remain inactive—to advance their projects and contribute to national refining capacity.
Additional project details, plans
Alongside expansion of the refinery’s crude processing capacity, the proposed expansion also will increase on-site power generation capacity, enabling full operational self-reliance for the refinery and associated petrochemical units, the company said.
The refinery’s current power plant already supplies internal needs and supports portions of the Lekki industrial corridor.
The operator also confirmed plans to list 10% of DRPC on the Nigerian Stock Exchange within 1 year, in line with commitments to broaden ownership and enhance transparency.
Formally commissioned for commercial operations in early 2024, the $20-billion integrated complex was designed to process 100% Nigerian crudes but has the flexibility to handle a range of African, Middle Eastern, and US light tight oils.
Built to meet all of Nigeria’s refined product demand while supplying surplus volumes for export to global markets, the refinery’s newly announced planned expansion marks the first major capacity upgrade at the site since its commissioning.
