Dangote Picks Honeywell for Next Phase of Mega Refinery Expansion

Dangote has signed a major agreement with US-based Honeywell to support its plan to double refining capacity to 1.4 million barrels per day (bpd) by 2028, marking one of the strongest signals yet that its ambition to build the world’s largest petroleum refining operation is firmly on track.

The partnership, announced on Tuesday, will allow Dangote to process a wider mix of crude grades as it prepares for its next phase of expansion. Honeywell will supply catalysts, specialised equipment, and technical services needed to boost output from the current 650,000 bpd single-train facility.

The deal also includes licensing of Honeywell’s Oleflex technology to raise Dangote’s polypropylene production to 2.4 million metric tonnes annually. Polypropylene is an increasingly valuable material used in the automotive, packaging and manufacturing industries.

While the companies did not disclose the commercial terms, a source familiar with the matter told BusinessDay the contract could exceed $250 million, depending on the scope of engineering and technology deployment.

Nigeria, Africa’s largest crude producer, has long faced the paradox of exporting raw crude while spending billions to import nearly all its refined products. Decades of breakdowns at state-owned refineries have fuelled persistent shortages, subsidy fraud, and pressure on foreign exchange reserves.

Dangote’s refinery, the largest in Africa and the world’s biggest single-train unit, was built to reverse this trend by supplying all domestic fuel needs and generating surplus for export. With an estimated $20 billion already invested in the Lekki site, Dangote signalled last month that it intends to add a second single-train unit to lift total capacity to 1.4 million bpd within three years.

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If completed on schedule, the expanded plant would be capable of processing nearly all of Nigeria’s current crude production of around 1.5 million bpd.

The Honeywell deal also comes at a pivotal moment for the US manufacturer. The company, now restructuring and preparing to spin off its aerospace division, is reinforcing revenue lines ahead of the carve-out of its most profitable business.

The agreement marks a significant step forward for both companies, Dangote in scaling its refinery into a global powerhouse, and Honeywell in deepening its footprint in one of the world’s most strategically important energy markets.