Dangote Refinery to Expand Capacity to 1.4 Million BPD

Dangote Petroleum Refinery, led by Chief Executive Officer David Bird, is set to expand its processing capacity from 650,000 barrels per day to 1.4 million barrels per day. The refinery aims to increase its flexibility by processing 130 different crude grades, significantly broadening its sourcing options beyond Nigeria's domestic supply.

Currently processing around 40 crude grades, the facility is designed as a fully merchant-style refinery, positioning itself as a competitive global trade hub. The expansion, estimated to cost $10 billion, is expected to reduce operational costs below $2 per barrel, enhancing the refinery's status as one of the world's lowest-cost large-scale refineries.

The facility, located in the Lekki Free Zone in Lagos, will also integrate petrochemical units and improve logistics infrastructure, contributing to Nigeria's goal of becoming a net exporter of refined petroleum products.