Dangote Refinery begins construction of second unit, targets 1.4 million bpd capacity
By Aboki Forex —
The Dangote Petroleum Refinery has started building a second crude processing unit that will add 700,000 barrels per day (bpd) to its capacity. The expansion will push the total capacity of the Lekki facility to about 1.4 million bpd.
Chief Executive Officer David Bird confirmed that work is already underway at the Lekki Free Trade Zone complex near Lagos. The new crude distillation unit is expected to be operational before the end of 2028.
The move is part of billionaire Aliko Dangote's plan to turn Nigeria into a major fuel exporter. The existing 650,000 bpd refinery has already changed the country's energy landscape. Nigeria recently became a net exporter of gasoline for the first time in decades after the refinery ramped up operations.
Global ambitions
The expansion will place Dangote in direct competition with large refining operators in Asia, Europe and the Middle East. The refinery has also become a key supplier of jet fuel to Europe. At one point earlier this year, the facility was exporting around 100,000 barrels of jet fuel daily, with European buyers taking nearly half of the shipments.
During recent Middle East supply disruptions, Nigeria enjoyed a rare cushion because of rising local refining output from the Dangote facility. The company is also planning to expand its fuel trading operations, which could deepen its influence across international energy markets.
East Africa project in view
Dangote is exploring another refinery project in East Africa. Kenyan officials have confirmed early discussions around a potential investment. If both projects go ahead, Dangote's combined refining capacity could reach about 2 million barrels per day.
The Dangote Group recently announced plans to begin crude oil production from its own upstream assets in the Niger Delta. This will help reduce its dependence on the Nigerian National Petroleum Company Limited for feedstock supply.