The Dangote Refinery is set for a major expansion as Dangote Industries has entered into a strategic partnership with Honeywell to increase its refining capacity to 1.4 million barrels per day (bpd) by 2028. This significant upgrade will enable the refinery to process almost all of Nigeria’s current crude oil production, estimated at about 1.5 million bpd.
According to a Reuters report, the partnership will see Honeywell supply catalysts, advanced equipment, and essential services needed to facilitate the expansion. By leveraging Honeywell’s expertise, Dangote will be able to refine a wider variety of crude grades, strengthening its capability to match both domestic and international market demands.
As part of the agreement, Dangote will also expand its polypropylene output a crucial industrial material used in manufacturing plastics and automobile components. This will be achieved through Honeywell’s Oleflex technology, which is designed to boost polypropylene production to an impressive 2.4 million metric tons annually.
While the financial details of the agreement were not publicly disclosed, sources familiar with the arrangements suggest the deal could exceed $250 million, depending on project complexity. The refinery, already one of the world’s largest single-train facilities, has seen an investment of over $20 billion and continues to grow in scale and capacity.
Only last month, Dangote confirmed its plans to double refinery operations by adding a second single-train unit within the next three years. Once fully upgraded, the plant will significantly reduce Nigeria’s dependence on imported refined petroleum products and enhance energy security.
This collaboration also comes at a key moment for Honeywell, which is restructuring its business operations and preparing to spin off its aerospace division. The deal with Dangote is expected to boost Honeywell’s revenue streams as it prepares for the major corporate transition.
The planned expansion marks a historic leap for Nigeria’s energy sector, positioning the Dangote Refinery as a dominant force capable of transforming the nation’s crude oil value chain and contributing substantially to economic growth.
