Dangote partners Honeywell to double refinery capacity to 1.4m bpd by 2028

Dangote partners Honeywell to double refinery capacity to 1.4m bpd by 2028

The Dangote Group has announced a major strategic partnership with Honeywell International Incorporated to support the next expansion phase of the Dangote 650,000 barrels-per-day Petroleum Refinery, with the goal of increasing its processing capacity to 1.4 million barrels per day by 2028.

In a statement released yesterday, Dangote said the collaboration with the US Fortune 100 industrial giant will deliver advanced technologies, catalysts, and specialised equipment designed to expand the refinery’s crude-processing range and enhance product quality. The initiative marks a critical milestone in Dangote’s ambition to build the world’s largest petroleum refining complex.

According to the statement, Honeywell’s UOP division, which has partnered with Dangote since 2017, will provide proprietary refining systems, high-performance column trays, catalyst regeneration units, and cutting-edge heat-exchanger technology to support next-generation operations.

Though financial details of the deal were not disclosed, the agreement aligns with Dangote’s recently unveiled plan to add a new single-train unit to meet Nigeria’s domestic fuel demand and supply surplus volumes to global markets.

The conglomerate also revealed that it is expanding its petrochemical footprint by scaling polypropylene production to 2.4 million metric tons annually using Honeywell Oleflex technology. Polypropylene is a crucial industrial raw material used in automotive components, packaging, and manufacturing.

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In addition, Dangote announced the next phase of its fertiliser expansion, targeting an increase in urea production capacity from the current three million metric tons to nine million metric tons annually. The project will add four new trains to the existing two, in response to rising African and international demand.

“Dangote Group remains committed to strengthening Nigeria’s energy security, delivering world-class industrial capacity, and driving sustainable economic growth through long-term investment and global partnerships,” the company stated.

Oil Market Outlook Turns Bleak

Meanwhile, analysts at JP Morgan have warned that global oil prices are on course to fall to their lowest levels in two decades—excluding the pandemic—as a surge in OPEC output triggers a supply glut.

The bank forecast that Brent crude, Nigeria’s benchmark, will average $42 per barrel in 2027, plunging into the $30 range by year-end if no intervention occurs. Brent, which traded above $82 in January, dropped to $62 on Tuesday due to OPEC’s aggressive production ramp-up and weaker demand, particularly as China accelerates its shift to electric vehicles.

JP Morgan projects an oversupply of 2.8 million barrels per day (bpd) next year, up from 1.5 million bpd this year, saying the imbalance will continue to depress global prices.

Analysts from Deutsche Bank and Macquarie also expect oil prices to drop into the mid-$50 range by year-end, a trend that could slash inflation and reduce transportation costs worldwide.

A report by the International Energy Agency (IEA) noted that global oil supply has surged by 6.2 million bpd since January, with Saudi Arabia contributing nearly 1.5 million bpd. However, the IEA warned that geopolitical tensions, sanctions on Russian producers, and US fiscal uncertainty could influence supply in the coming months.

Though global consumption growth is expected to ease, crude supply is projected to continue its rebound, widening market imbalances.

Dangote partners Honeywell to double refinery capacity to 1.4m bpd by 2028