Dangote Says Refinery Will Become World’s Largest by 2028 After Expansion

Dangote Says Refinery Will Become World’s Largest by 2028 After Expansion

Dangote Group Chairman Aliko Dangote says the Dangote Petroleum Refinery and Petrochemicals will become the world’s largest refinery by 2028 after a planned expansion that will significantly increase its processing capacity.

The 700,000-barrel-per-day facility in Lagos is already Africa’s largest refinery and the world’s largest single-train refinery. The planned expansion is expected to add another 700,000 barrels per day, taking total capacity to about 1.4 million barrels per day.

Dangote made the statement on Monday during a preliminary signing ceremony connected to the refinery’s planned public offering.

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Dangote Refinery Expansion to Double Capacity

The expansion will effectively double the refinery’s current processing capacity.

Makon Financials reported that Dangote Refinery has announced a $14.3 billion expansion plan aimed at increasing capacity from 700,000 barrels per day to 1.4 million barrels per day by 2029. Dangote, however, said the refinery would become the world’s largest by 2028.

The difference in the stated timelines means the expansion schedule will be important to watch as construction progresses.

The additional processing capacity would place the Lagos refinery above the capacity of existing facilities that currently rank among the largest globally.

The Dangote Refinery has already changed Nigeria’s position in the regional refined-products market.

With its current 700,000-barrel-per-day capacity, the facility is Africa’s largest refinery. Its single-train configuration also gives it the distinction of being the world’s largest refinery built around one crude-processing train.

The planned expansion would move the facility into a different category by substantially increasing its overall processing capacity.

Dangote said the expansion would enable the refinery to take the top position globally.

What the Expansion Means for Nigeria

Increasing refining capacity to 1.4 million barrels per day could have implications beyond the refinery itself.

Nigeria has historically depended heavily on imported refined petroleum products despite being one of Africa’s major crude oil producers. A larger domestic refinery gives the country greater capacity to process crude locally and supply refined products to domestic and international markets.

The additional capacity could also strengthen Nigeria’s position as a supplier of petroleum products to other African markets.

However, the economic impact will depend on how consistently the refinery can secure crude feedstock, operate at high utilization and move its products into domestic and export markets.