Dangote Refinery is expanding its refining business into the production of key chemicals used in detergents and cleaning products, aiming to reduce Nigeria’s reliance on imports while strengthening its position in the global petrochemicals market.
Dangote Petroleum Refinery and Petrochemicals will deploy technology from Honeywell International Inc. to produce 400,000 metric tons annually of linear alkylbenzene (LAB), a major ingredient in cleaning products. The refinery, which currently processes up to 650,000 barrels of crude oil per day, did not disclose the cost of the project.
The expansion targets a global LAB market projected to reach $11.5 billion by 2030, according to industry estimates. Nigeria currently imports nearly all of its detergent-related chemicals, making the new facility a strategic move to capture a high-margin segment of the value chain.
Once operational, the plant is expected to meet demand across Africa while generating surplus for export, positioning the refinery as a key supplier in international markets.
In a separate development, the refinery has also signed an agreement with Honeywell to produce an additional 750,000 metric tons of propylene annually. Both the LAB and propylene projects are expected to be completed within three years.
The expansion is part of Dangote’s broader growth strategy, which includes investments in fertiliser production and infrastructure. The group is also planning a new port in Lagos to support its industrial operations and logistics network.
Dangote is targeting $100 billion in revenue within four years, as global supply disruptions, including tensions around the Strait of Hormuz, continue to reshape energy and commodity markets.
The refinery’s diversification into petrochemicals mirrors the model of Reliance Industries Ltd., whose Jamnagar complex in India has become one of the world’s largest integrated refining and petrochemical hubs. That business contributes a significant share of the company’s earnings.
In addition, the Nigerian refinery is already working with Honeywell on plans to more than double its refining capacity to 1.4 million barrels per day by 2028, a scale that would rival leading global facilities.
Earlier in April, Dangote unveiled a $40 billion expansion plan spanning multiple sectors and countries. The strategy includes increasing fertiliser output, developing potash and phosphate projects in the Democratic Republic of Congo, refining copper in Zambia, and significantly boosting oil refining capacity.
