Nigerian billionaire Aliko Dangote partners with Honeywell on $16 billion Kenya refinery

Nigerian billionaire Aliko Dangote has selected U.S.-based Honeywell Technologies to provide engineering services and equipment for his planned $16 billion refinery in Kenya, adding another major industrial partner to the project as construction gets underway.

Honeywell said on Sept. 30 that Dangote Petroleum Refinery and Petrochemicals FZE had selected the company for process technologies, licensing, engineering services, proprietary catalysts, equipment and digital solutions for the planned 700,000-barrel-per-day refinery in Lamu.

The Honeywell contract is expected to be worth about $300 million, according to the company. The project is designed to become the world’s largest single-train refinery once Completed.

The announcement came the same day Dangote and Kenyan President William Ruto broke ground on the refinery in Lamu County. Reuters reported that the facility, estimated at $16 billion, is intended to supply diesel, petrol and jet fuel to Kenya and other markets across East Africa.

For Dangote, the Honeywell partnership extends a relationship that has already played a role in his Nigerian refining operations. Honeywell previously worked with Dangote on his refinery in Lekki, Lagos, and the Kenyan project will draw on engineering designs developed through that collaboration.

Honeywell said the use of established designs from the Nigerian refinery could reduce the development schedule for the Kenyan facility by nearly two years, or about 30% compared with the typical timeline for newly constructed facilities. 

“Dangote is committed to expanding Africa’s refining capacity and strengthening long-term energy security for the continent while also serving growing export markets,” Dangote said in Honeywell’s announcement. “Our proven collaboration with Honeywell Technologies will enable us to bring the facility online faster and provide the flexibility to process a broad range of crude oils.”

Honeywell Technologies UOP President Rajesh Gattupalli said the companies had developed large-train engineering designs through their longstanding relationship that could be applied to the Kenyan refinery.

The technology package will also allow the refinery to process a broad range of crude oils, from light to heavy grades, according to Honeywell. The company said this flexibility should allow the facility to source crude from multiple regions rather than relying on a single supply source.

The refinery is planned to produce gasoline, diesel, jet fuel and polypropylene. Its output is expected to serve Kenya, East Africa’s largest economy, as well as neighbouring countries in the region.

The project represents another expansion of Dangote’s refining ambitions beyond Nigeria. His Lagos refinery, which has a nameplate capacity of 650,000 barrels per day according to recent company and regulatory figures, has become the centre of his downstream energy business. Honeywell is also working with Dangote on upgrades aimed at increasing the Nigerian facility’s capacity to 1.4 million barrels per day, Reuters reported.

Dangote’s Kenyan refinery is expected to have the same 700,000-barrel-per-day scale as the larger capacity target for his Nigerian plant. Reuters reported that the Kenyan facility is scheduled for completion in 2030 and is intended to reduce East Africa’s dependence on imported refined petroleum products. 

The project has also faced legal and environmental challenges. Kenyan landowners and conservationists have raised objections, while a court dispute over land rights has required the parties to maintain the status quo pending further proceedings. Dangote Group said the court ruling would not prevent the groundbreaking but could affect some activities at the site. 

With the groundbreaking now complete and major engineering and technology contracts in place, the Lamu project is moving from development into construction, with Dangote seeking to replicate the large-scale refining model he established in Nigeria in East Africa.