Nigeria’s Dangote has selected Honeywell UOP to provide technical services and support for a planned capacity expansion at the Dangote Refinery in the Lekki Free Zone in Nigeria, Reuters reported on Tuesday.
The agreement will allow the refinery to process a wider range of crude grades using Honeywell’s catalysts and equipment, helping Dangote reach its goal of increasing the refinery’s capacity to 1.4 million bpd by 2028.
Dangote is also reported to be seeking to license Honeywell’s Oleflex dehydrogenation technology in a bid to increase the refinery’s polypropylene production to 2.4 million tonnes per year.
While financial terms of the agreement were not disclosed, a source familiar with the matter told Reuters a deal could be worth more than USD 250 million.
Nigeria is Africa’s top crude producer, but it relies heavily on imported refined fuels due to decades of underperformance by its state-owned refineries. The USD 20-billion Dangote refinery, which began operations last month, aims to supply both domestic and export markets.
Headquartered in the US, Honeywell UOP provides process technologies and consulting services to the refining, petrochemicals and gas processing sectors. The company won a contract to supply equipment, technology licensing and design services for the Dangote Refinery in 2017.