Dangote refinery targets US listing after 1.4m bpd expansion

THE Dangote Refinery is targeting a listing on a United States stock exchange after completing a planned expansion that will more than double its current capacity to 1.4 million barrels per day.

President of Dangote Industries Limited (DIL), Aliko Dangote, disclosed the plan during an interview with CNN on Thursday, saying the US listing would follow the expansion within the next two and a half years.

“After we have gone to 1.4 million bpd in the next two and a half years, we will now list in the US,” Dangote said.

He said the enlarged facility would become the largest refinery in the world and form part of a major petrochemical complex, making its shares attractive to international investors.

Dangote’s plan would give the refinery a presence in one of the world’s deepest capital markets after its proposed initial public offering on the Nigerian Exchange.

The billionaire described the planned Nigerian IPO as potentially the largest public offering in Africa and said he expected strong demand for the shares.

READ ALSO: Dangote refinery targets September IPO amid strong investor demand

He said the decision to first list the refinery on the NGX was intended to give Nigerians and other Africans an opportunity to acquire an ownership stake in the facility.

According to Dangote, the refinery’s expansion would also significantly increase its importance to global refined petroleum-product markets.

“We’ll be the biggest in terms of gas oil, which means diesel, to the world market,” he said, adding that the expanded refinery would also become a major supplier of aviation fuel globally.

The planned capacity increase comes as the 650,000-barrel-per-day refinery continues to strengthen its position in Nigeria’s downstream petroleum market and expand its reach into international markets.

Dangote changes stance on building refineries

Dangote also disclosed that his experience building the Nigerian refinery had changed his earlier position that he would never undertake another refinery project.

The billionaire is now considering a $15 billion refinery project in Kenya, saying the experience gained from delivering the Nigerian plant had given his group the technical expertise needed to execute large-scale refinery projects.

“I told you that, look, I will never, ever attempt to build a refinery again. But right now, to tell you the truth, I now understand how it is,” he said.

He said Dangote Industries had assembled a strong team capable of delivering major refinery projects and that the knowledge gained from constructing the Nigerian facility had become a competitive advantage for the group.

Dangote said he believed the company now possessed proprietary expertise in delivering very large refineries.

“We now have the techniques, we know how to do it, and we will deliver on schedule and cost,” he said.

The businessman had on September 7 said the Dangote Refinery was on course to become the world’s largest refinery by 2028 following the planned expansion to 1.4 million barrels per day.