The agreement will allow Dangote to process a broader range of crude grades to help support the planned expansion in output with the help of Honeywell’s catalysts and equipment, a Reuters report said, quoting the two companies.
Dangote will also look to increase its total production of polypropylene – an industrial material widely used to produce plastic containers and car parts – to 2.4 million metric tons per year by licensing Honeywell’s Oleflex technology.
Financial terms of the deal were not disclosed. While contracts of such nature tend to vary based on the project’s complexity, Reuters said a source familiar with the situation disclosed it could be valued at over $250 million.
With $20 billion spent to build the refinery in Lekki, Lagos, Dangote last month laid out plans to double the plant capacity to 1.4 million barrels per day by adding a second single-train unit over the next three years.
At that capacity, Dangote would be able to process nearly all of Nigeria’s current crude production of around 1.5 million bpd.
The agreement comes as Honeywell, once a conglomerate that is now in the process of splitting itself up, is shoring up revenues ahead of a planned carve-out of its aerospace business.
