Partnership to expand crude processing range, upgrade technology and increase polypropylene output
Dangote Industries has entered into a major partnership with U.S. engineering giant Honeywell to support plans to double the Dangote Refinery’s processing capacity to 1.4 million barrels per day (bpd) within the next four years.
According to a Reuters report citing both companies, the agreement will see Honeywell supply advanced catalysts, equipment and technology that will allow the Lekki-based refinery to handle a wider slate of crude grades, a key requirement for the massive expansion Dangote aims to complete by 2028.
The deal also includes plans to significantly boost the refinery’s petrochemicals output. Dangote intends to scale up production of polypropylene, a core industrial plastic used in packaging and automotive manufacturing, to 2.4 million metric tonnes annually by adopting Honeywell’s Oleflex technology.
While neither company revealed the financial value of the contract, a source familiar with the arrangement told Reuters it could exceed $250 million, depending on project complexity.
Dangote has already spent nearly $20 billion building the refinery Africa’s largest, which began initial operations this year. The company announced in October that it would add a second single-train unit to lift total refining capacity to 1.4 million bpd over the next three years. At that scale, the facility could process almost all of Nigeria’s current crude output of about 1.5 million bpd.
The agreement comes at a pivotal time for Honeywell, which is restructuring its business and preparing to spin off its aerospace division. The deal is expected to strengthen the company’s revenues as it navigates the transition.
About the Author
