Nigerian industrial conglomerate Dangote Group has selected US company Honeywell to support a new expansion phase of its mega-refinery, aiming to raise its processing capacity to 1.4 million barrels per day. The partnership includes the integration of technologies, equipment, and services developed by Honeywell UOP, the hydrocarbons-focused division of Honeywell International Inc.
Technical extension and capacity scale-up
The selected technologies aim to improve the efficiency of existing infrastructure and accelerate the refinery’s ramp-up by enabling the processing of a wider range of crude types. The project follows a standardisation strategy, supported by the continued use of processes already deployed on the site. Honeywell has been involved with the Dangote refinery for nearly a decade.
In addition to crude processing, the expansion also covers the petrochemical segment. With Honeywell’s licensed Oleflex technology, the refinery plans to add 750,000 tonnes of propylene annually, raising total polypropylene output to 2.4 million tonnes per year. This material is used primarily in industrial packaging and the automotive sector.
Investment and financing outlook
The financial terms of the agreement were not disclosed. However, industry estimates suggest that the deal could exceed $250mn. This expansion is part of a broader strategy outlined by the refinery last month to introduce a new single-train unit.
To finance the scale-up, Dangote Refinery plans to mobilise a mix of internal funding, a stock market listing of 5 to 10% of its capital, and potential partnerships—particularly with Middle Eastern investors—to ensure sufficient financial flexibility for its growth ambitions.
Aliko Dangote, chairman of the group, stated that the collaboration marks a pivotal phase in the evolution of Nigeria’s energy industry.
