Nigeria’s Dangote Refinery has selected US-based Honeywell to provide technology and equipment for a major expansion that will more than double its crude processing capacity.
The deal, announced on Monday, will see Honeywell supply solutions through its UOP division to help the Lagos-based facility handle a wider range of crude oils and boost output to 1.4m b/d from the current 650,000 b/d.
Honeywell has worked with the refinery for nearly a decade, and Dangote Group chairman Aliko Dangote described the latest agreement as “a significant milestone not only for Dangote’s refinery, but for Nigeria’s energy sector as a whole.”
The expansion also includes a petrochemical component.
Dangote plans to raise polypropylene production capacity to 1.4m t/yr from the current 900,000 t/yr using Honeywell’s Oleflex technology.
That’s more than enough to meet Nigeria’s current estimated demands of 250,000 t/yr as well as cut heavy reliance on imports.
Polypropylene is widely used in packaging, textiles, automotive parts and consumer goods.
The refinery, located in Lekki, Lagos State, began polypropylene production earlier this year from a new 900,000 t/yr facility.
Financing and global reach
Financial terms of the Honeywell contract were not disclosed, though industry sources suggest such deals could exceed $250m.
Dangote Refinery is funding the expansion through internal resources, a planned initial public offering of 5–10% of shares, and potential partnerships with Middle Eastern investors.
Mr Dangote confirmed the refinery will be listed on the Nigerian Stock Exchange next year, later than previously announced.
If completed, the project would make Dangote Refinery the largest in the world, surpassing India’s Jamnagar facility, which has a capacity of 1.36m b/d.
The company also plans to switch entirely to Nigerian crude by the end of 2025, ending reliance on imported feedstock.
Beyond Nigeria, Dangote Group has announced plans for a $2.5bn refinery in Ethiopia, a tank farm in Namibia, and a petrochemicals facility in China, as part of its wider push into global energy markets.