Dangote Picks Honeywell for Major Refinery Expansion
Nigeria’s refining sector has gained fresh momentum as Dangote Industries selects Honeywell to drive the next phase of its ambitious capacity expansion. The move positions the Dangote Refinery to double output to 1.4 million barrels per day (bpd) by 2028, reinforcing its bid to become the world’s largest petroleum refining complex.
Dangote Accelerates Toward 1.4m bpd Target
Dangote’s new agreement with Honeywell introduces advanced catalysts, high-efficiency processing units and specialised equipment that will help the refinery handle a wider range of crude grades. This flexibility is crucial as global refiners increasingly compete on feedstock optimisation, operational uptime and improved conversion rates.
With this partnership, Dangote is now moving from concept to execution on its second single-train unit an addition that will mirror the refinery’s current 650,000 bpd train. Once operational, the Lekki-based complex will have the scale to process nearly all of Nigeria’s existing crude output, sharply reducing the country’s reliance on imported fuel.
Polypropylene Output Set for Major Growth
The deal also strengthens Dangote’s petrochemicals portfolio. By licensing Honeywell’s Oleflex technology, the refinery aims to expand polypropylene production to 2.4 million metric tonnes per year. This increase will help meet rising global demand for industrial polymers used in packaging, automotive parts, textiles and consumer goods.
Although both companies withheld specific financial details, a source close to the transaction indicated that the deal could exceed $250 million. Such valuations are common for multi-train refinery upgrades involving complex engineering, long-term technology licensing and extensive equipment installation.
A Transformational Shift for Nigeria’s Energy System
Nigeria, despite being Africa’s largest crude oil producer, has long relied on imported fuel due to non-functional state-owned refineries. This dependence has triggered chronic shortages, persistent subsidy gaps and heavy pressure on foreign exchange reserves.
The Dangote Refinery, already Africa’s largest and the world’s biggest single-train plant, was designed to reverse this trend. With more than $20 billion invested, the refinery aims to satisfy domestic fuel needs and generate export surplus. As capacity expands, Nigeria’s downstream sector could experience a structural shift, boosting economic stability and reducing import bills.
Honeywell Strengthens Its Industrial Technology Position
For Honeywell, the timing is strategic. The company is restructuring its portfolio while preparing to carve out its aerospace division. Securing long-term agreements in energy and petrochemicals helps strengthen its revenue base during the transition.
A Partnership With Global Impact
Altogether, the Dangote–Honeywell collaboration signals a pivotal moment for Africa’s downstream industry. The expansion not only enhances Nigeria’s refining competitiveness but also reshapes regional energy trade flows. As work progresses, industry observers expect the project to amplify Nigeria’s influence in global fuel and petrochemical markets all while positioning Dangote as a dominant refining hub for decades to come.