Dangote Seals Deal To Upgrade Refinery Capacity to 1.4mbpd
- Dangote Group has announced a partnership with Honeywell International to expand the Dangote Petroleum Refinery
- The company plans to increase the capacity of the refinery to 1.4 million barrels per day by 2028
- Upon completion of the expansion, the refinery will be positioned as the world’s largest single-train facility.
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Group has announced a strategic partnership with Honeywell International Inc. to expand the Dangote Petroleum Refinery in Lekki, Lagos, to 1.4 million barrels per day (mbpd) by 2028, more than doubling its current capacity.
Source: Getty Images
In a statement, Dangote said the collaboration will leverage Honeywell’s advanced technology and services, including specialised catalysts, equipment, and process solutions, to enable the refinery to process a broader range of crude grades efficiently while enhancing product quality and operational reliability.
The expansion will also scale up polypropylene production to 2.4 million metric tons annually using Honeywell’s Oleflex technology.
Polypropylene is widely used in packaging, automotive, and manufacturing industries. Additionally, Dangote is progressing with the next phase of its fertiliser growth plan, increasing urea production from three million to nine million metric tons annually.
Dangote kicks off plans to expand refinery
Aliko Dangote, President of Dangote Industries Limited and CEO of Dangote Petroleum Refinery, said the decision to expand was driven by Nigeria’s enabling policy environment under President Bola Tinubu, as well as growing regional demand for cleaner fuels, the Nation reports.
Dangote said:
“The $20 billion facility, already the world’s largest single-train refinery, will more than double its capacity within the next three years, positioning Nigeria as a global leader in petroleum refining and a major driver of Africa’s industrial renaissance."
The refinery will also transition from producing Euro V to Euro VI fuel standards and expand power generation to 1,000 megawatts, ensuring full operational self-sufficiency.
Dangote promised that more than 85% of the workforce will be Nigerian, with continuous investment in skills development and technology transfer.
He estimated the refinery’s revenue could exceed $55 billion annually and said the project would strengthen Nigeria’s energy security, reduce foreign exchange outflows, create additional jobs, and support thousands of SMEs.
Dangote said:
“The expansion reflects our confidence in Nigeria’s future, Africa’s potential, and our commitment to building energy independence for our continent."
Source: Getty Images
Dangote refinery to list on NGX
Dangote also confirmed plans to list a portion of the refinery’s shares on the Nigerian Exchange (NGX) within the next year.
This move will give Nigerians a chance to be part owners of the refinery.
The refinery’s upgrade is expected to be completed within three years and financed through a combination of cash flow, public listing, and strategic investors.
Once finished, the Dangote Refinery will surpass India’s Jamnagar Refinery as the world’s largest, cementing Nigeria’s position as a global refining hub.
List of largest refineries in the world
Earlier, Legit.ng reported that Nigeria has emerged as a formidable player, thanks to the Dangote Petroleum Refinery.
The facility, which currently processes 650,000 barrels per day (bpd), has announced plans to expand its capacity to 1.4 million bpd, an upgrade that would make it the largest refinery in the world upon completion.
This development places Nigeria firmly among the top nations with the most powerful refining capabilities.
Source: Legit.ng
