The Dangote Petroleum Refinery has announced plans to expand its operations, increase production capacity and create additional employment opportunities as it works towards raising output to 1.4 million barrels per day (bpd) by 2029.
The refinery, located in Ibeju-Lekki, Lagos State, currently operates at about 700,000 barrels per day, according to officials of Dangote Industries Limited.
Expansion Project Underway
The Group Vice President of Oil and Gas and Fertiliser at Dangote Industries Ltd., Devakumar Edwin, disclosed the expansion plans during a media tour of the facility on Friday.
Edwin said engineering work for the expansion had progressed significantly, with most major equipment already ordered and key contracts awarded.
He explained that the company expects the project to be completed within three years, although completion could happen earlier depending on progress.
“We are targeting for three years, and probably we may be even doing faster,” Edwin said.
Refinery Workforce to Increase
As part of the expansion programme, the refinery plans to increase its workforce.
Officials said the growth in operations would require more personnel as additional production and petrochemical facilities are developed.
The refinery currently relies heavily on automation, with more than 70 per cent of operations controlled through automated systems.
Expansion Cost Expected to Be Lower
Edwin said the second phase of expansion would cost less than the initial construction because critical infrastructure already exists.
He listed existing facilities such as the refinery’s port, quarry, welding gas plant and developed land as factors that would reduce additional costs.
However, he noted that new petrochemical facilities would increase overall expenditure.
Refinery Designed for Global Crude Supply
According to Edwin, the facility was designed to process different crude grades from various regions, including African crude and United States West Texas Intermediate (WTI).
He said the flexibility would allow the refinery to reduce dependence on a single crude source.
“We have designed it to have a wider range of crudes which can be processed in the refinery,” he said.
Focus on Petrol, Diesel and Aviation Fuel Production
Dangote Refinery was configured to produce products that match Nigeria’s energy needs, with petrol accounting for about 53 per cent of production capacity.
Edwin said the facility was designed to ensure that about 95 per cent of output consists of high-value petroleum products such as: petrol, diesel, aviation fuel.
The remaining production capacity consists mainly of industrial products.
Export Market Expansion
Dangote Refinery currently supplies petroleum products to both domestic and international markets.
Officials said the refinery exports products including petrol, aviation fuel and diesel to markets in the United States, Europe and other regions.
The expansion will also increase production of petrochemical products such as:polypropylene, base oil, linear alkyl benzene.
Automation and Operations
During the media tour, journalists visited several sections of the refinery, including: the Main Control Room, central laboratory, storage facilities, loading bays, processing units.
The company explained that the high level of automation allows operations to be managed with fewer personnel around processing areas.
Funding Through IPO
The expansion programme comes as Dangote Petroleum Refinery and Petrochemicals seeks to raise approximately ₦2.15 trillion through an ongoing Initial Public Offering (IPO).
The company said proceeds from the offering would support its plans to increase production capacity.
