Dangote Expands Mega Refinery Ambitions and Targets Trading Growth

Aliko Dangote has initiated construction to double the output of his massive Nigerian oil refinery, a move that will position the facility as a contender for the title of the world’s largest site. This expansion aims to secure a more dominant position for Africa’s wealthiest individual within international fuel supply networks.

According to David Bird, CEO of Dangote Petroleum Refinery & Petrochemicals, the company is building a new unit at the Lekki complex capable of processing 700,000 barrels of crude oil daily. Once operational by the end of 2028, this addition will raise the total capacity of the industrial site to 1.4 million barrels per day.

The current refinery has already significantly influenced global energy markets. It has enabled Nigeria, Africa’s most populous nation, to reduce its reliance on imported refined products such as gasoline. Additionally, the facility has provided a buffer against supply disruptions linked to the war in Iran and has supplied essential jet fuel to Europe, helping to alleviate regional shortages.

Expanding the site’s footprint is expected to unlock further avenues for exports and trading activities. “Piling and site preparation is already well underway,” Bird stated during an interview at S&P Global’s Middle East Petroleum & Gas Conference in London. He added, “We will have steel coming out of the ground by the end of the year.”

Dangote had previously outlined plans to boost the existing plant’s capacity from 650,000 to 700,000 barrels a day. With the new facility included, the combined capacity will exceed three times that of Europe’s largest refinery and equal the output of Reliance Industries Ltd.’s Jamnagar complex in India, currently the world’s largest single-site refining hub.

The original project was pitched as a strategic solution for Nigeria, the continent’s leading oil producer, to cease exporting crude to Europe only to import refined fuels at higher prices. The Lagos-area facility’s opening was announced in 2023, seven years behind schedule, with operations commencing in early 2024.

Alan Gelder, senior vice president for refining, chemicals, and oil markets at consultancy Wood Mackenzie Ltd., commented on the project’s timeline. “Will it appear and will it operate successfully? Yes,” Gelder said. “Will it be early 2029? The probability of that is quite low as it needs everything to go perfectly. And it’s still a very large project.”

Source: Yahoo News Generated at: 2026-06-05 00:27:41 UTC