Honeywell has entered into a new technology and services agreement with Dangote Industries as the Nigerian conglomerate advances plans to expand its refining capacity to 1.4 million barrels per day (bpd) by 2028.
Under the agreement, Honeywell will supply catalysts, processing technologies, and specialised equipment aimed at enabling the facility to handle a broader mix of crude grades.
The upgraded capability is expected to support the planned scale-up of output as Dangote prepares to add a second large-scale processing unit to its existing operations.
In addition to increasing crude-processing capacity, Dangote will adopt Honeywell’s Oleflex technology to raise polypropylene production to 2.4 million metric tonnes annually.
The expansion positions the company to strengthen its footprint in the global petrochemicals market, where demand for polypropylene remains robust due to its widespread industrial applications.
Although the financial details of the agreement were not disclosed, industry sources indicate that the arrangement carries a potential value exceeding $250 million, depending on the scope of engineering and technology deployment.
The deal adds to Honeywell’s pipeline as the company navigates structural changes ahead of an expected separation of its aerospace division.
The partnership comes at a time when Nigeria continues its push to reverse decades of dependence on refined fuel imports despite being Africa’s largest crude producer.
Dangote’s existing 650,000 bpd single-train refinery, the largest of its kind globally, represents the country’s most ambitious attempt to address persistent supply deficits, stabilise domestic fuel availability, and reduce foreign-exchange pressures tied to petroleum imports.
With expansion plans now underway, Dangote aims to bring the refinery’s total processing capacity close to Nigeria’s current national crude output.
The company says the additional unit will be delivered within three years, consolidating its position as a central player in regional fuel supply and export markets.
Industry analysts note that the collaboration with Honeywell is a strong indicator that development of the second train is progressing as scheduled.
The project’s scale, combined with the integration of advanced processing technologies, is expected to reshape refining capacity across West Africa and improve Nigeria’s downstream resilience.
Dangote Industries said the latest agreement forms part of a broader long-term investment programme designed to optimise operational efficiency, expand product coverage, and strengthen the company’s competitiveness in global energy markets.