Dangote Refinery Upgrade, What It Means For Nigeria’s LPG Market

Dangote Refinery Upgrade, What It Means For Nigeria’s LPG Market

The recent announcement that the Dangote Petroleum Refinery in Lagos is undergoing an upgrade from 650,000 barrels per day (bpd) to 700,000 bpd marks a significant milestone in Nigeria’s energy development trajectory. This upgrade, expected to be completed by the fourth quarter of 2025, is not only a testament to the refinery's growing capacity but also has far-reaching implications for the domestic availability of Liquefied Petroleum Gas (LPG). As the largest single-train refinery in the world, the Dangote facility has already begun shaping Nigeria’s fuel landscape, and this expansion signals the potential for even greater influence, particularly in the LPG segment.

A central component of the refinery’s operations is its Residue Fluid Catalytic Cracking (RFCC) unit, which plays a critical role in transforming heavy crude residues into lighter, more valuable products such as gasoline, diesel, and LPG. Alhaji Aliko Dangote, President of the Dangote Group, disclosed that the RFCC is already operating at 85% of its capacity. He expressed optimism that the current modification efforts would bring total refining capacity up to 700,000 bpd, with several other components already surpassing 100% performance, some even reaching 145%.

One of the most important takeaways from this development is the anticipated increase in domestic LPG production. More LPG in the system could address several challenges currently facing the Nigerian LPG market. It could reduce the country’s reliance on imported LPG, stabilize local prices, ease distribution pressures, and expand access for households switching from firewood and charcoal to cleaner cooking options. With LPG production currently at 2,000 tonnes per day, the refinery is positioned to become a critical supplier in Nigeria’s push for clean cooking and energy self-sufficiency.

Furthermore, the refinery’s current crude sourcing strategy reflects a blend of global and local solutions. Dangote revealed that the refinery had imported 19 million barrels of crude oil from the United States between June and July 2025, accounting for about 55% of its feedstock for the period. While this demonstrates strategic foresight in maintaining operational stability, it also underlines the need for enhanced integration with domestic crude supply channels to ensure long-term sustainability.

Dangote’s reflections on the journey to building the refinery highlight the magnitude of the project. He candidly admitted that had he understood the full scale of the challenges ahead, he might not have embarked on the venture. Yet, his persistence has delivered what many consider a transformative asset for Nigeria and Africa at large. According to Dangote, many African countries continue to rely heavily on fuel imports, with only Algeria and Libya achieving self-sufficiency. This context reinforces the strategic importance of the Dangote refinery as a step toward reducing Nigeria’s and by extension, Africa’s dependence on foreign fuels.

Conclusively we think the expansion of the Dangote Refinery holds substantial promise for Nigeria’s LPG market. Increased production capacity will translate into more available LPG, potentially leading to lower prices, improved supply stability, and broader adoption of clean cooking energy. As the refinery pushes forward with its upgrade, the Nigerian energy sector watches with anticipation, hopeful that this development will bring about tangible improvements in both industrial output and everyday life for millions of Nigerians.

Source: Punch News.

• Lpg
• cooking gas
• nigeria
• dangote refinery
• lpg in nigeria