Dangote Group has announced a strategic partnership with Honeywell to enhance its refining operations and double the capacity of its Lekki refinery to 1.4 million barrels per day (BPD) by 2028.
The collaboration will enable Dangote to process a wider range of crude grades to support the planned increase in output, leveraging Honeywell’s advanced catalysts and equipment, Reuters reported, citing both companies.
In addition to crude processing, Dangote aims to raise its polypropylene production—a key industrial material used in plastics and automotive parts—to 2.4 million metric tons per year by licensing Honeywell’s Oleflex technology.
While financial details of the agreement were not officially disclosed, a source familiar with the matter indicated that the deal could be valued at over $250 million, depending on project scope and complexity.
Dangote has already invested $20 billion in building the Lekki refinery in Lagos and recently announced plans to double its capacity by constructing a second single-train unit within the next three years. At full expansion, the refinery would be capable of processing nearly all of Nigeria’s current crude output, estimated at around 1.5 million BPD.
The timing of the agreement aligns with Honeywell’s restructuring plans, as the company prepares to carve out its aerospace business while shoring up revenues through strategic industrial partnerships.
