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Home Business & Economy

Dangote Refinery plans capacity expansion to 1.4m bpd in 3 years

by Admin
January 14, 2026
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The Dangote Petroleum Refinery has launched an expansion programme to more than double capacity from 650,000 barrels per day to 1.4 million within three years.

The Managing Director and Chief Executive Officer, Mr. David Bird, disclosed this on Wednesday during an interactive media session in Lagos.

Bird said the expansion would use a “roofless replication” model, duplicating existing infrastructure to accelerate delivery without altering core engineering designs.

“Once engineers start tinkering with designs, projects return to prolonged engineering stages. Our approach avoids that.

“We will not re-engineer or redesign. This allows us to move directly into procurement and construction,” Bird said.

He expressed confidence, that the expansion would be completed within three years, citing extensive preparatory work already carried out at the Lekki site.

Bird said procurement of long-lead items would begin immediately, with completion targeted for the first quarter of 2026.

He added that site preparation and piling works were expected to begin before the end of January 2026.

“The remarkable thing about this site is the foresight of Aliko Dangote.

“The land has already been reclaimed, raised and prepared. Much of the pre-investment that delays projects has already been done,” he said.

Bird said steelwork for the expansion could begin emerging before the end of the year, reinforcing confidence in the project timeline.

He said the refinery would continue prioritising local capacity development by upskilling Nigerian workers and deepening domestic technical expertise.

On operations, Bird said the refinery imports 100 per cent of its crude feedstock by sea, enabling it to process diverse crude grades.

“This is not a traditional refinery tied to a single pipeline or crude stream.

“We can process Nigerian grades, alternative crudes, intermediate feedstocks and blending components. That flexibility guarantees security of supply,” Bird said.

He said advanced conversion units, described as the plant’s “moneymakers”, enable production of high-quality fuels meeting market specifications.

In spite of not operating at full capacity, Bird said the refinery consistently delivers products safely and reliably, even during planned maintenance.

“We have built enough resilience to take individual units offline and still meet market demand,” he said.

Bird said the refinery supplied over 50 million litres of Premium Motor Spirit daily throughout the festive season.

He disclosed current PMS production of between 50 and 52 million litres daily, with average truck-out volumes of about 50 million litres.

On the naira-for-crude policy, Bird said discussions were ongoing with NNPC Ltd. to increase crude supply under the arrangement.

He urged stronger implementation by government and regulators.

“Effective execution of the naira-for-crude policy is critical to boosting domestic refining, stabilising fuel prices and easing operational pressures,” Bird said.

Bird, an Australian and former Shell executive, assumes office in July 2025.

His appointment marks a strategic shift as the refinery scales operations and consolidates its role in Africa’s energy landscape.

Bird brings over 17 years’ global experience, with senior roles across Australia, Singapore and the United States.

He previously served as Vice President of Shell’s Prelude Floating LNG Project and supported commissioning of the Motiva Refinery in Texas.

In Singapore, he managed Shell’s largest Asian refinery, overseeing over 500,000 bpd and major expansion projects.

He also served as Senior Vice President at Santos Ltd and most recently as Chief Executive Officer of OQ8 in Muscat, Oman.

Industry analysts say Bird’s experience positions him strongly to lead Dangote Refinery, seen as central to Nigeria’s industrial revival and energy security goals. (NAN)

Tags: Dangote Petroleum RefineryMr. David BirdNNPC Ltd
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