Dangote Group has announced a new partnership with Honeywell International Incorporated to support the expansion of its 650,000 barrels per day refinery to 1.4 million barrels per day by 2028. The agreement will provide catalysts, process technologies, and advanced equipment needed to process a broader range of crude grades while boosting operational efficiency. Although financial terms were undisclosed, the deal aligns with Dangote’s move to add a new single-train unit to meet domestic demand and increase exports. The group is also scaling its polypropylene output to 2.4 million metric tons per year using Honeywell’s Oleflex technology and expanding urea production from three million to nine million metric tons annually.
The partnership deepens a relationship that began in 2017 when Honeywell’s UOP division started supplying proprietary refining systems and catalyst regeneration technologies to Dangote. This latest expansion underscores the group’s plan to build one of the world’s largest integrated refining and petrochemical complexes, with expected benefits including improved energy security, export growth, and enhanced industrial capacity for Nigeria.
Analysts say the investment comes at a time of sharp volatility in global oil markets. Forecasts from JP Morgan indicate Brent crude could fall to an average of 42 dollars in 2027 due to rising supply from OPEC members and weakening demand as consumers shift to electric vehicles. While lower prices may ease fuel costs and reduce inflation in some regions, concerns remain about geopolitical disruptions, new trade tariffs, and sanctions affecting major producers.
