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Dangote launches 700,000 b/d Nigeria refinery IPO

  • Märkte: Crude oil, Oil products
  • 14.09.26

Nigeria's Dangote 700,000 b/d Lekki refinery launched its initial public offering (IPO) earlier today to partly finance its expansion to 1.4mn b/d, offering 4.1bn shares at 525 naira/share (40¢/share).

Over N10bn worth of offers for Dangote refinery shares were received in the first hour of trading, group chairman of the Nigerian Exchange Group Umaru Kwairanga said. The Dangote refinery IPO is scheduled to end on 13 October.

Dangote Group chair Aliko Dangote said that the original plan for the refinery expansion plan was to raise $1bn through private placement and $1.5bn through the IPO, but the private placement received bids worth $3.7bn and was closed at $2.5bn. The debt component of finance for the $14.3bn expansion has already been raised, Dangote said.

He said today that foundation piling at the Lekki refinery expansion site has started, while refinery chief executive David Bird provided a project timeline that shows the expansion pushed back to 2030, from end-2029.

Bird said Lekki generated revenues of $13.9bn in the first half of this year, "more than the entirety of 2025". Profit in January-June was $1.8bn, reflecting "a period of low margins, normal margins and also a period of maintenance". The crude distillation unit (CDU) and residual fluid catalytic cracker (RFCC) were offline in parts of January and February, Bird said. Margins have improved in the second half of the year and the CDU run rate was 105pc of capacity in August, he added. Lekki will be Europe's largest single supplier of jet fuel for the third month running, according to Bird.

The Dangote Group's plan to expand the Lekki refinery's capacity to 1.4mn b/d is part of a wider $46bn programme that includes a new 700,000 b/d refinery in coastal Kenya and a two-train 12mn t/yr natural gas liquefaction plant in Nigeria. Construction of the 700,000 b/d Lamu refinery in Kenya will start on 30 September and should last three years, Dangote said today, narrowing down a previous timeline.

The expansion programme also plans to deliver additional petrochemicals capacity at Lekki. Polypropylene production should increase from 830,000 t/yr to 2.4mn t/yr. Linear alkyl benzene production capacity of 400,000 t/yr is to be introduced. "Additional base oil production capacity also forms part of the broader expansion programme", and "urea production capacity in Nigeria will be tripled from 3mn to 9mn t/yr, in addition to the 3mn t/yr capacity [being built] in Ethiopia", Dangote said in a statement previously sent to Argus.

Dangote, in addition to feedgas pipelines for its planned LNG plant, also plans to build export facilities for its LPG, which it currently sells into Nigeria's domestic market exclusively. The company previously said at a 650,000 b/d run rate it could produce about 912,500 t/yr of LPG.

Dangote Group also plans to start crude oil production through upstream subsidiary WAEP from Nigeria's shallow-water OMLs 71 and 72 after several years of delay.

Two projects to support market access for Dangote refineries' output will see construction start next month, according to Dangote Group. A 2,650km oil products pipeline will be constructed to run from Namibia through Botswana to South Africa. The planned pipeline will link up with another that runs through Zimbabwe and Zambia to terminate in Congo (Kinshasa). An oil products port and storage terminal in coastal Somalia with a connecting pipeline to additional storage in landlocked Ethiopia is the second project.


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