Dangote Industries has entered into a landmark agreement with Honeywell to supply advanced refinery technology and services that will enable the expansion of its refining capacity to 1.4 million barrels per day (bpd) by 2028. The deal, announced on Tuesday and reported by Reuters, is seen as a major step toward positioning Africa’s largest refinery as one of the world’s biggest petroleum processing hubs.
Under the partnership, Honeywell will provide state-of-the-art catalysts, equipment, and technical expertise to allow the refinery to process a wider variety of crude oil grades. This operational flexibility is considered crucial as Dangote accelerates preparations for its second single-train unit.
The existing Dangote refinery, commissioned in 2023 with a capacity of 650,000 bpd, is already among the world’s largest single-train refining facilities. The new agreement also comes at a time when Honeywell is undergoing a significant corporate restructuring ahead of spinning off its highly profitable aerospace division. The collaboration is expected to bolster Honeywell’s revenue base and reinforce its role in global energy technology.
Dangote announced last month that it plans to double its output by adding another 750,000-bpd single-train line within three years. Once completed, the refinery’s full 1.4 million-bpd capacity would be capable of processing almost all of Nigeria’s current crude production of about 1.5 million bpd, a development that could transform the nation’s energy landscape and foreign exchange earnings.
The growing momentum follows a new crude supply agreement between the Nigerian National Petroleum Company Limited (NNPC) and the Dangote Refinery. The deal, finalised last month, will see NNPC deliver five crude cargoes each in September and October, extending supplies for two years. Nigeria had earlier agreed to sell 445,000 bpd of crude to the refinery in naira under a pilot scheme designed to ease pressure on the currency and stabilise domestic fuel prices.
The naira-to-crude initiative, introduced by the Federal Government in October 2024, allows local refineries—including the Dangote plant—to receive crude oil in local currency. Dangote has previously stated that its operations do not compete with NNPC, describing both companies as playing complementary roles in strengthening Nigeria’s energy and refining sector.
