The Dangote Petroleum Refinery has chosen US-based Honeywell as its strategic associate to help its push to double capability to 1.4 million barrels per day by 2028, a serious step that strengthens its bid to turn into the world’s largest single-location refining complicated.
The announcement, contained in an announcement issued on Tuesday, comes solely a month after the refinery unveiled its growth programme.
The assertion, signed by administration, revealed that Honeywell will provide catalysts, specialist tools and expertise options to allow the refinery to course of a broader slate of crude grades.
It mentioned the collaboration is anticipated to considerably enhance operational effectivity and help the projected ramp-up in output.
It learn, “Dangote Group is happy to announce that it has entered a strategic partnership with Honeywell Worldwide Inc to help the following part of growth of the Dangote Petroleum Refinery. This collaboration will present superior expertise and providers that can allow the refinery to extend its processing capability to 1.4 million barrels per day by 2028, marking a serious milestone in our long-term imaginative and prescient to construct the world’s largest petroleum refining complicated.
“By this Bargain, Honeywell will provide specialised catalysts, tools, and course of applied sciences that can permit the refinery to course of a broader slate of crude grades effectively and to additional improve product high quality and operational reliability.”
Beneath the deal, Dangote will even deploy Honeywell UOP’s Oleflex expertise to spice up its polypropylene capability to 2.4 million metric tonnes per 12 months, deepening Nigeria’s footprint within the international petrochemicals market.
Though the {financial} phrases weren’t explicitly disclosed, a supply aware of the transaction instructed Reuters that the Bargain may exceed $250 million, relying on the ultimate configuration of the growth.
“Dangote Group can be advancing its petrochemical footprint. As a part of the broader collaboration, we’re scaling our polypropylene capability to 2.4 million metric tons yearly utilizing Honeywell’s Oleflex expertise. Polypropylene is a key industrial materials broadly used throughout packaging, manufacturing, and automotive functions.
“Whereas contracts of such nature are likely to range primarily based on the mission’s complexity, a supply aware of the scenario mentioned it may very well be valued at over $250 million,” It famous.
Honeywell, a worldwide Fortune 100 industrial and expertise firm, provides a large portfolio of options throughout aviation, automotive, industrial automation, and superior supplies.
Honeywell’s division UOP has been a expertise associate to Dangote since 2017, offering proprietary refining techniques, catalyst regeneration tools, high-performance column trays, and warmth exchanger applied sciences that help our best-in-class operations.
Along with refining growth, the assertion defined that the group is progressing with the following part of its fertiliser progress plan in Nigeria.
“We are going to enhance our urea production capability from 3 million metric tons to 9 million metric tons yearly.
“The present plant consists of two trains of 1.5 million metric tons every. The growth will add 4 further trains to fulfill rising demand for high-quality fertiliser throughout Africa and international markets,” It added.
Nigeria, Africa’s high crude oil producer, has for many years depended nearly fully on imported refined gas because of the collapse of its state-owned refineries in Port Harcourt, Warri and Kaduna.
Regardless of spending trillions of naira on turnaround upkeep through the years, the services remained moribund, fuelling recurrent shortage, subsidy fraud and extreme stress on overseas change reserves.
The $20bn Dangote Refinery, situated within the Lekki Free Zone in Lagos, was conceived as the answer to this long-running paradox.
With an preliminary nameplate capability of 650,000 bpd, the most important single-train refinery on the planet, the plant was designed to fulfill all of Nigeria’s petrol, diesel, aviation gas and LPG wants, with the capability to export surplus to regional and worldwide markets.
Final month, Aliko Dangote introduced plans so as to add a second processing practice that may carry complete capability to 1.4 million bpd. At that degree, the refinery may take up nearly all of Nigeria’s present crude output of about 1.5 million bpd, probably remodeling the construction of the home oil market.
“Our growth imaginative and prescient is easy, place Nigeria as a worldwide refining powerhouse,” Dangote mentioned on the time.
“We wish to create an power complicated able to assembly Africa’s wants whereas competing with the perfect globally.”
The Bargain additionally comes at a pivotal time for Honeywell, which is restructuring and making ready to spin off its aerospace division, presently its most worthwhile phase. The take care of Dangote is a part of a broader technique to deepen its footprint in high-growth power and petrochemical markets.
As Nigeria seeks to finish a long time of gas import dependence, the most recent deal is seen because the strongest indication but that the Dangote refinery is transitioning from development milestone to operational maturity, and now right into a part of aggressive scale-up.
“Dangote Group stays totally dedicated to delivering world-class industrial capability, strengthening Nigeria’s power safety, and driving sustainable {economic} progress by means of long-term funding, innovation, and strategic international partnerships,” the assertion concluded.