Dangote Petroleum Refinery has signed a major technology and services agreement with U.S.-based Honeywell UOP to support its ambitious plan to expand refining capacity from 650,000 barrels per day to 1.4 million barrels per day by 2028, positioning the Nigerian mega-refinery to become the largest single-site refining complex in the world.
Under the deal announced on Tuesday, Honeywell will supply advanced catalysts, equipment, and proprietary technologies that will enable the refinery to process a wider variety of crude oil grades, improving operational flexibility and efficiency as output scales up.
A key component of the partnership is the licensing of Honeywell’s Oleflex technology, which will allow Dangote to dramatically increase its polypropylene production capacity to 2.4 million metric tons annually.
Polypropylene is a versatile polymer used in manufacturing plastic packaging, automotive components, textiles, and consumer goods.
Although the companies did not disclose financial details, industry sources familiar with similar large-scale licensing and engineering contracts estimate the total value of the agreement could exceed $250 million.
The expansion will involve the construction of a second 750,000-barrel-per-day train adjacent to the existing facility in Lekki, Lagos. Once completed, the combined 1.4 million bpd capacity will be able to refine nearly all of Nigeria’s current crude oil production of approximately 1.5 million barrels per day, effectively ending the country’s decades-long dependence on imported refined petroleum products.
The Dangote Refinery, built at a cost of over $20 billion, began operations earlier this year and has already started supplying gasoline, diesel, aviation fuel, and other products to the domestic market while preparing for exports.
For Honeywell, the contract represents a significant revenue boost for its Process Solutions division at a time when the company is executing a major restructuring that includes the planned spin-off of its aerospace business.
The partnership underscores Nigeria’s growing role as a global refining hub and marks another milestone in Aliko Dangote’s vision to transform the country from a major crude exporter into a leading producer of high-value refined products and petrochemicals.
