• Dangote Refinery selects Honeywell to expand capacity to 1.4M barrels/day
  
• Deal includes tech to boost polypropylene output to 2.4M tons/year
  
• Expansion backed by internal funds, IPO plans, and Middle East investors
  

Nigeria’s Dangote Refinery has chosen U.S. company Honeywell to supply technology, services, and equipment that will allow the refinery to process a wider range of crude oils and reach a capacity of 1.4 million barrels per day, the refinery said on Monday.

The agreement covers processing solutions from Honeywell UOP aimed at improving efficiency and throughput while making the most of existing infrastructure to accelerate progress toward the new capacity target. Honeywell has already been working with the refinery for nearly a decade.

“Our continued collaboration with Honeywell marks a significant milestone not only for Dangote’s refinery, but for Nigeria’s energy sector as a whole,” said Aliko Dangote.

The expansion also includes a petrochemical component, with Dangote planning to produce an additional 750,000 tons of propylene per year using Honeywell’s licensed Oleflex technology. This would raise total polypropylene production capacity to 2.4 million tons per year.

The financial terms of the deal were not disclosed, but a source quoted in local media said a contract of this kind could exceed $250 million.

Honeywell’s selection is part of Dangote Refinery’s strategy to support a rapid, standardized ramp-up by relying on processes already in use at the site. The partnership aligns with a plan unveiled last month to add a new single-train unit. The goal is to meet Nigeria’s domestic demand while producing surplus volumes for export.

To support this expansion, Dangote Refinery is using a mix of internal financing, a potential initial public offering of a 5 to 10 percent stake, and prospective partnerships, including with investors from the Middle East.

Olivier de Souza