Dangote Taps Honeywell to Double Refinery Capacity to 1.4 Million bpd by 2028

 

In a major move for Nigeria’s energy sector, Dangote Petroleum Refinery and Petrochemicals has selected Honeywell International Inc. to supply advanced technology and equipment that will enable its refinery in Lekki, Lagos, to ramp up processing capacity from 650,000 barrels per day (bpd) to an ambitious 1.4 million bpd by 2028. 

This agreement marks one of the clearest signals yet that Dangote’s vision of creating the world’s largest single-train petroleum refinery could be coming into sharper focus. 

What the Deal Means: Upgrading Infrastructure & Expanding Capacity

Through this partnership:

Honeywell will supply specialised catalysts, equipment, and process technologies allowing Dangote’s refinery to handle a broader range of crude grades more efficiently and reliably. 

This supports the planned expansion — adding a second single-train unit — aimed at raising throughput to 1.4 million bpd within the next three years (by 2028). 

On the petrochemicals front, Dangote will also license Honeywell’s Oleflex technology, which enhances polypropylene production up to 2.4 million metric tons annually — a key raw material widely used in plastics, automotive parts, and packaging industries. 

While the companies have not disclosed exact financial details, sources familiar with the agreement estimate it could be valued at over US$250 million given the scale and complexity of the upgrade. 

Why This Matters — For Nigeria, Africa, and the Global Energy Landscape

Energy security and import reduction

For decades Nigeria — despite being Africa’s largest crude-oil producer — has imported refined fuel due to outdated or non-operational state refineries. By fully realising the upgraded Dangote facility’s capacity, Nigeria stands to meet domestic fuel demand, significantly curtailing fuel imports, and conserving foreign-exchange reserves. 

Industrial growth and petrochemical expansion

With increased polypropylene output, Dangote isn’t just refining crude — it’s positioning Nigeria as a potential hub for petrochemical manufacturing, which could support downstream industries like plastics manufacturing, packaging, automotive parts, and more. 

Boosting economic development and export potential

A refinery running at 1.4 million bpd could process nearly all of Nigeria’s crude production (estimated around 1.5 million bpd), creating surplus for export. This has implications not just for Nigeria’s balance of trade, but also for job creation, industrial capacity building, and stimulus for local manufacturing.

Enhancing operational flexibility and crude-type diversity

With Honeywell’s technology, Dangote’s refinery can process a wider variety of crude oil grades — meaning it won’t be tied to just light crude types, but can adapt to different blends depending on market conditions. 

What’s Behind Honeywell’s Role

Honeywell UOP — the refining and petrochemical-technology arm of Honeywell — has been supplying refining systems, catalyst regeneration units, column trays and heat-exchanger technologies to Dangote since 2017. 

In this new agreement:

Honeywell provides proprietary catalysts and process technologies — core to enabling the refinery to handle more crude and refine it efficiently. 

The Oleflex process license will boost polypropylene output significantly, allowing Dangote to capture more value along the petrochemical value chain. 

For Honeywell — a global industrial technology company — this deal strengthens its footprint in Africa’s fast-growing energy and petrochemical sector, especially as it restructures and repositions its business globally. 

Challenges & What to Watch

While the expansion plan is promising, certain challenges remain:

Scaling up from 650,000 bpd to 1.4 million bpd will require not just equipment but robust logistics for crude supply, storage, and distribution networks. 

The refinery must maintain high operational efficiency, safety, and environmental compliance — especially with increased throughput and diverse crude types.

Market factors such as global oil prices, demand for refined products, and competition from other regional refineries may influence profitability and return on investment.

Conclusion: A Game-Changer for Nigeria’s Energy Future

The strategic partnership between Dangote and Honeywell represents a bold step forward — not just for a single refinery, but for Nigeria’s broader ambition to regain energy sovereignty, build industrial capacity, and reduce dependence on fuel imports.

If successful, by 2028 the upgraded refinery could process nearly all of Nigeria’s crude output, flood the market with locally refined fuel and petrochemicals, and potentially turn Nigeria into a regional refining and manufacturing powerhouse.

This isn’t just a corporate expansion — it could be a turning point in Nigeria’s energy and economic trajectory.