Dangote refinery expansion to cost over $350 million

Dangote Group has signed a $350 million contract with India’s state-owned Engineers India Limited (EIL) to upgrade its refinery from 650,000 to 1.4 million barrels per day. The expansion project, which includes the addition of a second processing train, aims to produce Euro VI-compliant fuels. EIL will serve as the Project Management Consultant (PMC) and Engineering, Procurement, and Construction Management (EPCM) consultant, a role it previously played in the delivery of the existing 650,000 barrels-per-day refinery.

The project also involves a significant increase in petrochemical output, with Dangote planning to boost polypropylene production from 830,000 tonnes per annum to 2.4 million tonnes per annum. This will be achieved by revamping the existing polypropylene unit, installing an additional 1.2 million-tonne unit, and adding a 750,000-tonne UOP Oleflex unit to enhance propylene feedstock supply.

EIL stated that the renewed engagement reflects confidence in its technical and project delivery capabilities. The company will deploy its decades of experience and global execution model to deliver the project, which is expected to position Dangote as the world’s largest petroleum refinery. The expansion will strengthen fuel production within Africa, reduce reliance on imports, and support regional energy security.

The proposed expansion is a project of global significance and will stand among the largest refinery complexes at a single location. Aliko Dangote, the company’s founder, had earlier disclosed plans to double the refinery’s capacity, exploring new financing options and potential partnerships with Middle Eastern investors to support the expansion. In December 2025, Dangote announced plans to list a 10% stake in the refinery on the Nigerian Exchange in 2026.

The upgrade is expected to have a significant impact on the regional energy landscape, increasing fuel production and reducing reliance on imports. With the expansion, Dangote refinery will play a crucial role in supporting regional energy security and strengthening Africa’s fuel production capabilities. The project’s completion will be a significant milestone for the company, solidifying its position as a major player in the global petroleum industry.

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