Dangote Group has signed an agreement with Honeywell to provide services that will help boost the refinery’s refining capacity to 1.4 million barrels per day (bpd) by 2028.
Anthony Chiejina, chief branding and communications officer, Dangote Group, confirmed the development to TheCable on Tuesday.
According to the group, Honeywell will provide catalysts, equipment and technical support to help process more crude grades at the refinery.
In a report on Tuesday, Reuters, which reported the deal first, said the agreement will allow Dangote refinery to process a wider range of crude grades.
Advertisement
According to the publication, the move supports the planned increase in the refinery’s output with the assistance of Honeywell’s catalysts and equipment.
“Dangote will also look to increase its total production of polypropylene – an industrial material widely used to produce plastic containers and car parts – to 2.4 million metric tons per year by licensing Honeywell’s Oleflex technology,” the statement reads.
“Financial terms of the deal were not disclosed. While contracts of such nature tend to vary based on the project’s complexity, a source familiar with the situation said it could be valued at over $250 million.”
Advertisement
On October 26, Aliko Dangote, the founder of Dangote Group, said the Dangote refinery was expanding its production capacity from 650,000 bpd to 1.4 million bpd.
The billionaire said the expansion process will take three years to complete.
