Dangote Refinery signs a multi-million dollar deal. It partners with US-based Honeywell International Inc. The deal will see the expansion of the refinery’s operations.
The Announcement
The deal was announced today by executives at Dangote Group. They chose Honeywell to offer “state-of-the-art” services and equipment. This is a follow-up to their partnership begun in 2017. Moreover the deal targets bolstering efficiency. Honeywell provides catalysts and technical expertise.
Expansion Details
Dangote intends to double its refining capacity. Consequently the refinery expanded from 650,000 barrels per day to 1.4 million barrels per day, thus becoming the largest single location refining complex in the world.
Additionally, the manufacture of polypropylene increases as well to 2.4 million metric tonnes annually. Production of Urea also increases from 3 million to 9 million metric tons a year. Most importantly, the refinery’s crude grades increased due to the expansion. The current plant processes approximately all of Nigeria’s 1.5 million barrels per day crude.
Technologies Involved
Honeywell provides cutting edge solutions. The company delivers Oleflex technology for polypropylene expansion. This boosts output for plastics and car parts.
In addition, Dangote uses catalysts regeneration equipment. High performance column trays and heat exchangers improve performance. These tools lower costs and energy consumption. They provide better product quality and reliability.
Timeline and Goals
This will be completed by 2028. Dangote adds a second single-train unit over the next three years. Furthermore, the deal may top $250 million in value. It furthers Honeywell’s growth in energy markets.
Benefits accruing to Nigeria
This joint venture fortifies energy security: Nigeria decreases its dependency on imported fuels. In addition, the refinery will meet all the domestic requirements and leave surplus quantities for export.
In conclusion, it develops employment and economic activities. It places Nigeria in the global limelight in petrochemicals.
