Nigeria’s Dangote Refinery will expand capacity to 1.4 million bpd by 2028 with the addition of a new 750,000 bpd processing line, Argus reported on Monday.
The second line will be built in Lagos alongside Dangote’s existing 650,000-bpd unit, which began commercial operations in 2024. A potential capacity expansion was part of the facility’s original design, and the decision to go ahead follows a period of appraisal of the refinery’s operational performance.
Dangote Group president and CEO Aliko Dangote stated that experience gained during the construction of the first unit and shared infrastructure will allow for the delivery of the second unit within a short timeline.
Dangote added that a deal with a refinery technology licensor was signed last week, without naming the company. The refinery has previously said that most processing technology in the first unit is licensed from US firm Honeywell UOP.
The expansion will be financed with operating cash flow and “one or two strategic investors,” Dangote told Argus.
With the expansion, the refinery will increase its output of polypropylene to 2.4 million tonnes per year (tpy) from the current level of 900,000 tpy, boost linear alkyl benzene production and add base oil capacity. Plans also include pursuing winter-grade diesel and raising the quality standard of its produced fuel to Euro VI from Euro V.
Securing sufficient crude feedstock is expected to remain a challenge, however. The refinery has previously stated it does not receive enough domestic crude for its operations, though it is encouraged by President Bola Tinubu’s intention to increase Nigeria’s crude output to 2.4 million bopd and require domestic oil to be processed in-country.
Source: Theenergyyear.com