Dangote Group Partners with China for Shipping Fleet

Dangote Group, led by billionaire Aliko Dangote, is collaborating with Chinese shipyards to construct a new shipping fleet to address rising freight costs and the increasing cargo requirements of its refinery and other operations. Edwin Devakumar, the group’s vice president for oil, gas, and fertiliser, announced this during a meeting with the Nigerian Chamber of Shipping and maritime agencies in Lagos.

The first batch of vessels could arrive as early as 2029, aligning with the planned expansion of the Dangote oil refinery from 700,000 barrels per day (bpd) to 1.4 million bpd within five years, necessitating approximately 1,800 vessel calls annually. Currently, the refinery operates 75 to 100 ships monthly, totaling about 900 ships yearly.

The expansion will be partly funded by an initial public offering of Dangote Petroleum Refinery and Petrochemicals, set to open for subscription on September 14, aiming to raise around $1.6 billion. The group plans to start small with its fleet and grow over time, driven by constraints in the indigenous shipping market.