Dangote Refinery has tapped Honeywell to provide services and help double its refining capacity to 1.4 million barrels per day by 2028.
Dangote last month laid out plans to double the plant capacity to 1.4 million barrels per day by adding a second single-train unit over the next three years.
Mr Aliko Dangote, who owns the biggest share in the oil facility, had disclosed that it was seeking to sell a 10 per cent stake in his refinery, adding that it also planning to borrow an additional $5 billion to expand the oil facility based in the Lekki area of Lagos.
At that capacity, Dangote Refinery would be able to process nearly all of Nigeria’s current crude production of around 1.5 million barrels per day.
The agreement comes as Honeywell, once a conglomerate that is now in the process of splitting itself up.
The company is shoring up revenues ahead of a planned split from its aerospace business, which is currently its biggest revenue generator. This deal will help strengthen the standalone entity.
The latest development affirms Dangote Refinery’s plan to become the world’s largest petroleum refinery, overtaking Reliance’s Jamnagar Refinery in Gujarat, India which has a refining capacity of 1.24 million barrels per day.
The agreement will allow the oil refiner to process a broader range of crude grades to help support the planned expansion in output with the help of Honeywell’s catalysts and equipment, the companies said on Tuesday.
Dangote Refinery will also look to increase its total production of polypropylene, an industrial material widely used to produce plastic containers and car parts, to 2.4 million metric tons per year by licensing Honeywell’s Oleflex technology.
According to Reuters, which first reported the deal, the financial terms were not disclosed. However, a source told the publication it could be valued at over $250 million.
Since its opening in 2023, the 650,000-barrels per day Dangote Refinery has not been able to operate at optimal capacity due to a lot of challenges including sourcing crude oil and logistic challenges.