Dangote Expands $20bn Refinery with Honeywell Deal to Produce Plastics, Detergent Inputs

Dangote Refinery has entered into a strategic agreement with Honeywell to deploy advanced petrochemical technology aimed at expanding production capacity for plastics and detergent inputs, marking a significant step in Nigeria’s industrialisation drive.

The partnership will see the $20 billion Lekki-based refinery utilise Honeywell UOP’s Oleflex technology to produce an additional 750,000 metric tonnes of propylene annually.

Propylene is a key feedstock used in the production of polypropylene, widely applied in packaging, consumer goods and industrial materials.

In addition, the refinery will deploy Honeywell technology to produce 400,000 metric tonnes of linear alkylbenzene annually, a critical raw material used in the manufacture of detergents and cleaning products.

Once fully operational, the facility is expected to rank among the largest linear alkylbenzene production plants globally.

The agreement represents a strategic shift by Dangote Refinery from a fuel-focused operation to a fully integrated petrochemical hub, reinforcing its position as a central player in Africa’s downstream and manufacturing value chain.

The move aligns with the group’s broader objective of reducing Nigeria’s reliance on imported industrial raw materials while building local capacity for large-scale production of essential consumer and industrial inputs.

Industry analysts note that the expansion into petrochemicals is expected to create significant value across multiple sectors, including manufacturing, packaging, and household goods, while improving supply chain efficiency and reducing foreign exchange pressure linked to imports.

The petrochemical expansion builds on the refinery’s existing infrastructure, including a $2 billion petrochemical plant within the Lekki complex, which commenced polypropylene production in March 2025 with an installed capacity of 830,000 metric tonnes per year.

The refinery, which currently processes up to 650,000 barrels of crude oil per day, is also undergoing phased expansion aimed at increasing capacity to 1.4 million barrels per day by 2028. If achieved, this would position the facility as the largest refinery globally by throughput.

The collaboration between Dangote and Honeywell extends an existing relationship established during the construction of the refinery, where Honeywell technology played a key role in process design and efficiency optimisation.

While financial details of the new agreement were not disclosed, the scale of the planned output indicates a multi-billion-dollar expansion in Nigeria’s petrochemical capacity.

From a macroeconomic perspective, the development is expected to support Nigeria’s industrial diversification strategy by deepening backward integration, boosting local manufacturing, and enhancing export potential across West Africa.

The increased domestic production of petrochemical inputs such as polypropylene and linear alkylbenzene is also likely to stabilise prices in the local market and improve competitiveness for Nigerian manufacturers.