Dangote Petroleum Refinery on Tuesday announced that it has picked US-based Honeywell as its strategic partner to support its plan to double capacity to 1.4 million barrels per day by 2028.
The announcement, which was contained in a statement issued on Tuesday, comes only a month after the refinery unveiled its expansion programme.
The statement, signed by management, revealed that Honeywell will supply catalysts, specialist equipment and technology solutions to enable the refinery to process a broader slate of crude grades.
The statement also added that the collaboration is expected to significantly improve operational efficiency and support the projected ramp-up in output.
I “Dangote Group is pleased to announce that it has entered a strategic partnership with Honeywell International Inc to support the next phase of expansion of the Dangote Petroleum Refinery. This collaboration will provide advanced technology and services that will enable the refinery to increase its processing capacity to 1.4 million barrels per day by 2028, marking a major milestone in our long-term vision to build the world’s largest petroleum refining complex.
“Through this agreement, Honeywell will supply specialised catalysts, equipment, and process technologies that will allow the refinery to process a broader slate of crude grades efficiently and to further enhance product quality and operational reliability.”
Under the deal, Dangote will also deploy Honeywell UOP’s Oleflex technology to boost its polypropylene capacity to 2.4 million metric tonnes per year, deepening Nigeria’s footprint in the global petrochemicals market.
Although the financial terms were not explicitly disclosed, a source familiar with the transaction told Reuters that the agreement could exceed $250 million, depending on the final configuration of the expansion.
“Dangote Group is also advancing its petrochemical footprint. As part of the wider collaboration, we are scaling our polypropylene capacity to 2.4 million metric tons annually using Honeywell’s Oleflex technology. Polypropylene is a key industrial material widely used across packaging, manufacturing, and automotive applications.
“While contracts of such nature tend to vary based on the project’s complexity, a source familiar with the situation said it could be valued at over $250 million,” It noted.
Honeywell, a global Fortune 100 industrial and technology company, offers a wide portfolio of solutions across aviation, automotive, industrial automation, and advanced materials.
Honeywell’s division UOP has been a technology partner to Dangote since 2017, providing proprietary refining systems, catalyst regeneration equipment, high-performance column trays, and heat exchanger technologies that support our best-in-class operations.
In addition to refining expansion, the statement explained that the group is progressing with the next phase of its fertiliser growth plan in Nigeria.
“The existing plant consists of two trains of 1.5 million metric tons each. The expansion will add four additional trains to meet growing demand for high-quality fertiliser across Africa and global markets,” It added.
The $20bn Dangote Refinery, located in the Lekki Free Zone in Lagos, was conceived as the solution to this long-running paradox.
With an initial nameplate capacity of 650,000 bpd, the largest single-train refinery in the world, the plant was designed to meet all of Nigeria’s petrol, diesel, aviation fuel and LPG needs, with the capacity to export surplus to regional and international markets.
Last month, Aliko Dangote announced plans to add a second processing train that would lift total capacity to 1.4 million bpd. At that level, the refinery could absorb almost all of Nigeria’s current crude output of about 1.5 million bpd, potentially transforming the structure of the domestic oil market.
“Our expansion vision is simple, position Nigeria as a global refining powerhouse,” Dangote said at the time.
“We want to create an energy complex capable of meeting Africa’s needs while competing with the best globally.”
The agreement also comes at a pivotal time for Honeywell, which is restructuring and preparing to spin off its aerospace division, currently its most profitable segment. The deal with Dangote is part of a broader strategy to deepen its footprint in high-growth energy and petrochemical markets.
As Nigeria seeks to end decades of fuel import dependence, the latest deal is seen as the strongest indication yet that the Dangote refinery is transitioning from construction milestone to operational maturity, and now into a phase of aggressive scale-up.
“Dangote Group remains fully committed to delivering world-class industrial capacity, strengthening Nigeria’s energy security, and driving sustainable economic growth through long-term investment, innovation, and strategic global partnerships,” the statement concluded.
