By Ayomide Otitoju
Dangote Industries has entered into a partnership with Honeywell to support its plan to double the capacity of the Dangote Refinery to 1.4 million barrels per day (bpd) by 2028.
According to a Reuters report citing both companies, the agreement will enable the refinery to process a wider range of crude grades as Honeywell supplies catalysts and equipment needed for the planned expansion.
As part of the deal, Dangote also aims to increase its polypropylene output to 2.4 million metric tonnes annually by adopting Honeywell’s Oleflex technology. Polypropylene is widely used in manufacturing items such as plastic containers and automotive parts.
Although the financial details were not disclosed, a source familiar with the matter told Reuters the contract could exceed $250 million, depending on project complexity.
Dangote, which invested $20 billion to build the refinery located in Lekki, Lagos, recently announced plans to add a second single-train unit within three years to achieve the new 1.4 million bpd capacity. At that scale, the refinery could process almost all of Nigeria’s current crude output of about 1.5 million bpd.
The agreement comes as Honeywell restructures its operations, including plans to spin off its aerospace division while strengthening its revenue base.
