Dangote Partners with Honeywell to Boost Refinery Capacity to 1.4 million BPD by 2028

Nigeria’s Dangote Refinery has secured a major partnership with Honeywell to support its ambitious plan to double refining capacity to 1.4 million barrels per day (bpd) by 2028. The collaboration marks one of the strongest signals yet that Dangote’s long-term vision of becoming the world’s largest petroleum refinery is steadily taking shape.

Under the new agreement, Honeywell will supply advanced catalysts, processing technologies, and specialized equipment that will allow the refinery to handle a broader mix of crude oil grades. This capability is crucial for the planned expansion, which includes adding a second single-train refining unit to the already operational 650,000 bpd plant in Lekki, Lagos. Although financial terms were not revealed, a source familiar with the deal suggested its value could exceed $250 million due to its scale and technical complexity.

The partnership also extends into petrochemicals. Dangote plans to ramp up its polypropylene production to as much as 2.4 million metric tons annually using Honeywell’s Oleflex technology. Polypropylene is essential in manufacturing plastic containers, automotive parts, and various industrial materials, positioning the refinery as a major player in the global petrochemicals market.

Nigeria, Africa’s top crude oil producer, has long grappled with the paradox of exporting crude while importing most of its refined petroleum due to failing state-owned refineries. This dependency has triggered recurring fuel shortages, subsidy crises, and burdens on foreign exchange reserves. Dangote’s refinery—built at a cost of $20 billion and recognized as the world’s largest single-train refining facility—is designed to solve this national challenge by meeting domestic fuel demand and producing a surplus for export.

If the planned expansion is completed, the refinery could process nearly all of Nigeria’s current crude output of about 1.5 million bpd. Meanwhile, Honeywell, which is restructuring and preparing to spin off its aerospace division, stands to strengthen its revenue stream through this high-impact project.