Dangote Refinery Expands Into High-Value Petrochemicals

Dangote refinery partners Honeywell to produce propylene and detergents feedstock, expanding into high-margin petrochemicals and reducing import dependence.

The Dangote Group is deepening its push into higher-value petrochemicals, with its refinery in Lekki, Lagos set to begin large-scale production of key industrial chemicals, including the ones for plastics and detergents.

The petrochemical expansion followed a new agreement between Dangote Petroleum Refinery and Petrochemicals and Honeywell, under which the American firm will supply advanced process technologies and catalysts to boost output of critical feedstocks used in plastics and detergents.

In a statement seen by THISDAY issued from Charlotte, North Carolina, Honeywell said the collaboration would enable the refinery to significantly scale up production of propylene and linear alkylbenzene (LAB), both considered high-margin petrochemical products with strong global demand.

Under the agreement, Dangote will deploy Honeywell UOP’s Oleflex™ technology to produce an additional 750,000 metric tonnes of propylene annually. Propylene is a key input in the manufacture of packaging materials, consumer goods and a wide range of industrial products.

The refinery will also integrate a suite of petrochemical technologies to produce 400,000 metric tonnes per year of LAB, a major ingredient in detergents and other cleaning agents. At full capacity, the Lekki facility is expected to rank among the largest LAB production plants globally.

“Honeywell will provide industry-leading petrochemical process technologies and catalysts to Dangote Petroleum Refinery and Petrochemicals FZE (Dangote) to create plastics and detergents, helping the region strengthen energy security by reducing reliance on imports, stimulating industrial growth and strengthening regional supply chains.

“Dangote will use Honeywell UOP’s Oleflex™ technology to produce an additional 750,000 metric tons of propylene annually at the refinery, supporting the manufacturing of packaging materials, consumer goods and industrial products. Additionally, Dangote will deploy a suite of Honeywell UOP’s petrochemical technologies and catalysts to make 400,000 metric tons per year of linear alkylbenzene (LAB), a key ingredient in detergents and surfactants for household and industrial cleaning products. Once at full production, Dangote’s Lekki LAB plant will be one of the largest in the world,” the Honeywell statement said.

In his comments, President of the Dangote Group, Aliko Dangote, said the partnership reinforces the company’s ambition to strengthen Nigeria’s industrial base and reduce dependence on imports.

He noted that the adoption of advanced processing technologies would not only meet rising domestic and regional demand for petrochemical products but also position the group as a competitive global supplier.

“Our continued collaboration with Honeywell advances our vision to strengthen Nigeria’s industrial sector, supporting the nation’s supply chain independence and economic growth,” said Aliko Dangote, President of Dangote Petroleum Refinery and Petrochemicals.

“Honeywell’s technologies enable us to help the region meet rising demand for consumer and industrial goods, positioning Dangote as a global supplier and driving viable economic development throughout West Africa,” he added.

The development marks a strategic shift for the refinery from primarily fuels production into higher-value chemical manufacturing, a segment that typically offers stronger margins and more stable long-term demand.

Honeywell, which has maintained a long-standing relationship with the Dangote refinery project, said its technologies would improve operational efficiency, reliability and output across both existing and new processing units.

According to the company, the broader collaboration is also expected to support Dangote’s plan to expand refining capacity from 650,000 barrels per day to about 1.4 million barrels per day by 2028, potentially making it the largest petroleum refinery in the world.

President of Honeywell UOP, Rajesh Gattupalli, said the deployment of advanced process technologies and digital solutions would enable the refinery to maximise throughput while meeting growing global demand for essential petrochemical products.

“Dangote’s ongoing investments in advanced process technologies and digital solutions to maximise efficiency and throughput position it among the world’s leading refinery and petrochemical facilities,” said Rajesh Gattupalli, President of Honeywell UOP.

“Honeywell is helping drive growth and long-term value by improving reliability and production in existing and new facilities. This collaboration demonstrates how advanced technology can help manufacturers meet the growing global demand for essential petrochemical products,” he stressed.

The petrochemical push comes at a time when African economies are seeking to deepen local manufacturing and reduce reliance on imported industrial inputs, particularly in sectors such as plastics, packaging and household goods.

Meanwhile, Dangote Sugar Refinery Plc has announced plans to raise up to N500 billion through a Rights Issue, subject to regulatory approvals.

The decision was approved by shareholders at the company’s 20th Annual General Meeting (AGM) in Lagos and disclosed in a statement signed by the Company Secretary, Temitope Hassan.

According to the company, the capital raise is aimed at strengthening its financial base and supporting long-term growth across its operations.

Shareholders authorised the board to issue ordinary shares under terms to be determined by the directors, with provisions for underwriting and the possibility of offering unsubscribed shares to other investors.

The move reflects Dangote Sugar’s strategy to expand its operations, particularly in line with Nigeria’s push for greater self-sufficiency in sugar production through backward integration.

The planned fundraising ranks among the largest rights issues in Nigeria’s corporate history and underscores the group’s broader ambition to scale operations across both its industrial and consumer goods segments.

“…Subject to the approval of the relevant regulatory authorities, the directors of the company be and are hereby authorised to raise capital of up to N500 billion by way of Rights Issue through the issuance of ordinary shares, on such terms and conditions and at such time as the directors may deem fit or determine, and that the directors be and are hereby further authorised to do all such things and execute all such documents as may be necessary to give effect to this resolution.