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Dangote Picks Honeywell for $300m Kenya Refinery Deal

Nigerian billionaire Aliko Dangote has selected US-based Honeywell Technologies to provide engineering services, technology and equipment for his planned $16 billion refinery in Kenya.

The agreement, estimated at $300 million, covers the development of the 700,000-barrel-per-day refinery being built in Lamu County.

Dangote and Kenyan President William Ruto recently broke ground on the project, which is expected to become one of East Africa’s largest industrial developments when completed.

Honeywell said its previous involvement in the development of Dangote’s refinery in Lagos would help accelerate work on the Kenyan project. The company’s established engineering designs could shorten the construction timeline by nearly two years.

The US technology company is also involved in plans to expand the capacity of Dangote’s Nigerian refinery from its current 650,000 barrels per day to about 1.4 million barrels per day.

The Kenyan refinery is expected to produce key petroleum products including petrol, diesel and jet fuel for the domestic market, with surplus output potentially supplied to other countries across East Africa.

The facility will also be designed to process different grades of crude from multiple sources, giving it flexibility in securing feedstock.

The project has faced opposition from some local landowners and environmental groups over concerns relating to land use and potential ecological impacts.

Dangote has also offered governments in East Africa a combined 30 per cent stake in the refinery. Kenya has been linked to a possible 10 per cent interest, while Ethiopia and Rwanda have also expressed interest in participating in the project.

The investment is part of Dangote Group’s broader expansion of its petroleum and industrial operations across Africa, following the completion of its major refinery project in Nigeria.