The Nigerien government has signed an agreement with Canadian energy company Zimar Group Inc. and US-based partner Hightech Co. for design, financing, construction, and operation of a 100,000-b/d grassroots refinery and petrochemical complex at Dosso, in southwest Niger.

Estimated at an overall cost $1.9 billion, the agreement entails a total duration of 16 years, including 3 years of construction and 13 years of subsequent operation under a build-operate-transfer (BOT) public-private partnership, after which the refinery will be transferred to the Nigerien government, according to a mid-August statement from L’Agence Nigérienne de Presse (ANP), Niger’s official press agency.

Alongside the conventional 100,000-b/d crude oil refinery, the project scope under the agreement covers an associated petrochemical complex, pipelines, storage installations, and other yet-to-be-specified infrastructure.

While the newly signed agreement does not authorize an immediate start of construction, ANP said Niger’s negotiating committee has given the partners 4 months to secure financing and complete detailed engineering for the project to ensure final investment decision occurs within 12 months of signing the mid-August 2026 agreement.

Upon announcing the agreement, Niger’s Minister of Foreign Affairs Bakary Yaou Sangaré said the milestones will allow a monitoring committee to assess the partners’ performance and track implementation within a defined framework.

The parties said ongoing development of the project remains subject to financing and engineering requirements set out in the agreement, according to ANP.

If completed, the proposed refinery would expand processing of domestically produced crude, helping reduce Niger’s exposure to imported fuels on which the country currently relies despite its growing crude production.

The project also would help support development of local Nigerien refining and petrochemical capabilities, including training of Nigerien engineers, technicians, and operators, ANP said.

Project background

First identified as a major regional project in July 2024, the Nigerien government subsequently signed a memorandum of understanding with Zimar in October 2024 for the proposed modular refinery and petrochemical complex covering design, financing, construction, commissioning, operation, maintenance, management, and eventual transfer of the installations back to Niger.

Shortly thereafter, the project drew local scrutiny in early November 2024 when Nigerien civic organization Independent Circle of Reflections and Citizen Actions requested additional due diligence on Zimar. The organization cited concerns about Zimar’s public information, telephone accessibility, and registration, urging the government to verify the company’s financial and technical abilities before further advancing the project.

Niger also sought technical support on the project from Algeria in January 2025, when Sahabi Oumarou, Niger’s then-petroleum minister, met with a delegation from Algeria’s state-owned Sonatrach to discuss the proposed Dosso refinery and petrochemical complex. At the time, the project was described as a modular 30,000-b/d refinery expandable to 100,000 b/d.

As part of that January 2025 meeting, Sonatrach agreed to support training for Nigerien personnel, including placements for engineers and senior technicians at Algerian refineries and the Algerian Petroleum Institute.

By mid-January 2025, Sonatrach and Nigerien state petroleum distributor Société Nigérienne des Produits Pétroliers had signed a partnership agreement related to implementation of the refinery and petrochemical project, with the parties also establishing terms of reference emphasizing Nigerien participation in project decision-making, production, and marketing.

As of June 2026, Niger had revised the project’s terms of reference and moved away from the modular configuration. Petroleum Minister Hamadou Tini said the government had instead selected a conventional refinery because it better matched Niger’s ambitions for hydrocarbon processing and industrial development.

The feasibility study was being reassessed at that time after Nigerien technical services had reviewed the partner’s study and transmitted observations for consideration. The ministry was also conducting an independent feasibility study to evaluate the project and proposed financing.

Tini said implementation would depend on the technical findings and adequate financial guarantees. He also noted that several companies had expressed interest in the project, including Sonatrach through its subsidiary Sonatrach International Petroleum Exploration and Production Corp. (SIPEX), China National Petroleum Corp. (CNPC), and UK-based Savannah Energy PLC.

If completed, the proposed Dosso refinery would become Niger’s second refinery, joining the CNPC-developed 20,000-b/d refinery at Zinder, Niger, about 75 miles north of the border with Nigeria.