At this capacity, Dangote Refinery could process nearly all of Nigeria’s current crude production of around 1.5 million barrels per day.
Dangote Group is joining forces with Honeywell to expand the capacity of its Lekki Refinery to 1.4 million barrels per day (bpd) by 2028, Reuters reports.
The partnership will allow Dangote to process a wider range of crude grades while supporting the planned increase in output through Honeywell’s advanced catalysts and equipment.
In addition, Dangote plans to boost its polypropylene production to 2.4 million metric tons annually by licensing Honeywell’s Oleflex technology, which is widely used to manufacture industrial materials such as plastic containers and automotive parts.
Financial terms of the deal were not disclosed, but sources familiar with the project suggest it could be valued at over $250 million.
With $20 billion already invested to build the refinery in Lekki, Lagos, Dangote last month revealed plans to double the plant’s capacity by adding a second single-train unit within three years. At that output, the refinery would be able to process nearly all of Nigeria’s current crude production of roughly 1.5 million bpd.
The agreement also comes at a time when Honeywell, previously a conglomerate now in the process of spinning off its aerospace business, is strengthening revenues ahead of the planned carve-out.