In a move to expand its market reach, the Dangote Refinery is planning to establish a terminal in the Caribbean, facilitating the export of petroleum products to North American countries.
This announcement was made by Aliko Dangote, the president and CEO of the refinery, during Afreximbank’s Trade and Investment Forum held in The Bahamas on Wednesday.
The African richest man highlighted the refinery’s capability to efficiently supply petroleum products to the Caribbean region, promising delivery within 18 to 20 days.
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“I know the price in the Caribbean in terms of petroleum products is very high. We produce it cheaply. We can always bring it here. We can set up a terminal and we’ll be able to fix their needs,” he stated.
The proposed bilateral agreement aims to construct a terminal specifically for this purpose, ensuring that the Caribbean region benefits from more affordable petroleum products. Dangote explained that cheap energy could significantly boost the local economies by accelerating growth.
Apart from petroleum products, Dangote also announced plans to export cement to the Caribbean. The Dangote Group’s cement production capacity is expected to increase from nearly 52 million tons to about 62 million tons by the end of next year. This expansion enables the conglomerate to meet the demands of the Caribbean market effectively.
Dangote articulated the potential for a mutually beneficial relationship, stating, “It’s not only about the oil. We now have a capacity of almost 52 million cement capacity. By the end of next year, we will be at 62 million of cement capacity. We are not only saying that we can bring in from Nigeria or from Africa.”
He further explained that if the Caribbean countries have essential ingredients like limestone, the company could set up local production facilities within 28 months, promoting self-sufficiency in the region.
“We’ve done that before in Africa and we should be able to free them up from the shackles of other people,” he added.
Targeting Broader Markets
The Dangote Refinery, with its massive 650,000 barrel-per-day refining capacity, is set to revolutionize the oil and gas sector. Once operational, it will be the largest refinery in Africa and Europe, significantly impacting the $17 billion Africa-European market by reducing the continent’s dependence on imported petroleum products from Europe.
In addition to the Caribbean, Dangote revealed ambitions to supply refined products to the Brazilian market and other North American countries.
“Our capacity is too big for Nigeria. It will be able to supply West Africa, Central Africa, and also Southern Africa,” Dangote remarked during a panel discussion in Rwanda a few weeks ago.
Widening the Scope: From Oil to Steel
The Dangote conglomerate is not just stopping at oil and cement. It is broadening its business scope, marking a significant presence in various industries. Recently, Dangote announced plans to enter the steel production sector, further diversifying its industrial footprint.
“We want to make sure every single steel that we use will come from Nigeria,” Dangote said, underlining the company’s commitment to local production and self-sufficiency.
This ambitious move into steel production follows the successful launch of a Sinotruk assembly plant in Lagos. The plant, established in collaboration with China’s Sinotruk, aims to meet the growing demand for commercial vehicles in Nigeria and across Africa.
This venture is expected to boost local manufacturing capabilities and reduce dependence on imported trucks, aligning with the broader vision of industrialization and economic development in the region.
The plan to establish a terminal in the Caribbean, along with the potential export of cement and the vast refining capacity of the Dangote Refinery, underscores the company’s strategic efforts to become a major player in the global oil and gas market. This expansion, which promises economic growth for the regions involved, is also expected to highlight the significant role of African enterprises in the global economy.