Dangote picks American Company as key partner for Refinery major expansion

The Dangote Petroleum Refinery has taken a major step in its expansion drive after appointing US-based Honeywell as its strategic partner to help double its refining capacity to 1.4 million barrels per day by 2028.

The decision, disclosed in a statement on Tuesday, marks a significant milestone just weeks after the company unveiled its long-term capacity-upgrade plans.

According to the management statement, Honeywell will provide catalysts, specialised machinery, and advanced technology systems that will enable the refinery to process a wider mix of crude oil varieties while improving output and operational efficiency.

The statement read, “Dangote Group is pleased to announce that it has entered a strategic partnership with Honeywell International Inc to support the next phase of expansion of the Dangote Petroleum Refinery.

This collaboration will provide advanced technology and services that will enable the refinery to increase its processing capacity to 1.4 million barrels per day by 2028, marking a major milestone in our long-term vision to build the world’s largest petroleum refining complex.

“Through this agreement, Honeywell will supply specialised catalysts, equipment, and process technologies that will allow the refinery to process a broader slate of crude grades efficiently and to further enhance product quality and operational reliability.”

Part of the deal includes the deployment of Honeywell UOP’s Oleflex technology, which will expand the refinery’s polypropylene output to 2.4 million metric tonnes annually a move expected to significantly boost Nigeria’s role in the global petrochemical market.

Although financial specifics were not disclosed, a source with knowledge of the agreement told Reuters that the value could exceed $250 million depending on final project specifications. As the statement added, “While contracts of such nature tend to vary based on the project’s complexity, a source familiar with the situation said it could be valued at over $250 million.”

Honeywell, a Fortune 100 global technology firm, has worked with Dangote since 2017 through its UOP division, which has supplied proprietary refining systems, catalyst regeneration units, and high-efficiency processing equipment used in the refinery’s current operations.

The statement also revealed that the company is pressing ahead with its next phase of fertiliser expansion.

“We will increase our urea production capacity from 3 million metric tons to 9 million metric tons annually,” it noted, adding that four new production trains would be built alongside the existing two.

Nigeria has long relied on imported refined petroleum despite being Africa’s biggest crude producer, largely due to the collapse of state-owned refineries.

The $20 billion Dangote Refinery in Lagos was developed to end this dependence by supplying all major domestic fuel needs and exporting surplus products.

Last month, Aliko Dangote confirmed plans for a second processing train that will raise capacity to 1.4 million bpd enough to absorb nearly the country’s entire crude production. At the time, he stated, “Our expansion vision is simple, position Nigeria as a global refining powerhouse,” adding, “We want to create an energy complex capable of meeting Africa’s needs while competing with the best globally.”

Honeywell’s new partnership with Dangote comes as the US company prepares to spin off its aerospace division and deepen its presence in fast-growing industrial and energy markets.
The Dangote Group said the agreement signals the beginning of a new operational phase for the refinery, transitioning from construction and commissioning into aggressive long-term scaling.

The statement concluded that “Dangote Group remains fully committed to delivering world-class industrial capacity, strengthening Nigeria’s energy security, and driving sustainable economic growth through long-term investment, innovation, and strategic global partnerships.”