Dangote Refinery to process 130 crude grades in major expansion

The Dangote Refinery plans to increase the number of crude oil grades it can process from about 40 to 130 as part of an expansion project. The expansion aims to double the refinery’s capacity to 1.4 million barrels per day and make it more competitive in global energy markets.

Africa’s largest oil refinery, owned by Aliko Dangote, is preparing for a major transformation. The refinery’s Chief Executive Officer, David Bird, disclosed in an interview with S&P Global Commodity Insights that the facility plans to expand its crude-processing capability from about 40 crude grades to as many as 130 varieties.

Reducing dependence on Nigerian crude

The initiative forms a key part of a broader expansion programme aimed at doubling the refinery’s capacity to 1.4 million barrels per day, according to Business Insider Africa. The planned upgrade is expected to reduce the refinery’s dependence on Nigerian crude supplies and position the Lekki-based facility as a major player in the international refining market.

Bird said the refinery is being designed to operate like leading merchant refineries in Europe and Asia rather than a conventional refinery that relies on a single source of crude oil. He explained that the ability to process up to 130 crude grades will give the refinery greater flexibility to source crude from multiple countries. This allows it to respond quickly to changes in global oil prices and supply conditions.

The expanded capability will also enable the refinery to manufacture a broader range of petroleum products that meet different international specifications. This improves its access to export markets across various regions.

Lower costs and long-term deals

Bird noted that the refinery will be able to process heavier crude grades and other foreign crude streams depending on prevailing market opportunities. He added that future expansion units could accommodate substantial volumes of Middle Eastern crude oil through blending operations.

The refinery’s planned scale is expected to deliver significant cost advantages. Bird said operating costs could fall below $2 per barrel, strengthening the facility’s position among the world’s most efficient large-scale refining operations.

With production volumes set to rise sharply, the company is also adjusting its marketing strategy. Rather than relying heavily on spot purchases and unpredictable truck demand, the refinery is seeking long-term supply agreements with international fuel distributors and national oil companies. Bird emphasised that the company intends to build direct relationships with buyers, particularly in the aviation fuel market, to ensure stable product offtake while supporting local industry partners.

If completed as planned, the expansion will further establish the Dangote Refinery as a globally competitive energy hub capable of sourcing crude from diverse markets and supplying refined products to customers around the world.