Dangote Plans to Double Refinery Capacity to 1.45 Million b/d
Dangote plans to add a second crude distillation unit at its Lekki refinery, lifting total capacity to 1.45 million b/d and potentially making it the world's largest refinery.
Dangote is planning to expand its Lekki refinery in Nigeria by adding a second crude distillation unit, which would double the facility's capacity to 1.45 million barrels per day and make it the world's largest refinery. The move comes after the refinery has been running at full capacity for two months, pushing product exports to Europe to record levels and overtaking traditional suppliers from the Gulf and the US.
The expansion would further reshape global fuel trade flows. The Lekki refinery's rise has already reduced West African imports of clean products by nearly 25% year-on-year in the second quarter. For energy traders, this signals a structural shift in Atlantic Basin refining margins and product flows. The addition of 700,000 b/d of new capacity could compress crack spreads and alter diesel and gasoline trade routes. Traders can monitor these shifts on NowPrice's live fuel dashboard to track real-time price movements.
Looking ahead, the key question is how Dangote will finance and execute the expansion, and how quickly new capacity can come online. The project will also face competition from other mega-refineries in the Middle East and Asia. Market participants will watch for updates on engineering contracts and financing arrangements, as well as the impact on regional crude and product balances.