Nairobi – Nigerian billionaire Aliko Dangote has selected US-based Honeywell Technologies for a contract worth about $300 million to provide technology, engineering services and equipment for his planned $16 billion refinery in Lamu, Kenya.
According to Business Insider Africa, Honeywell will work on the 700,000-barrel-per-day refinery, which is expected to become the world’s largest single-train refinery once completed.
The deal was announced as Dangote and Kenyan President William Ruto broke ground on the project in Lamu on Wednesday.
Honeywell’s package includes process technologies, licensing, engineering services, proprietary catalysts, equipment and digital solutions. The company previously worked with Dangote on his refinery in Lekki, Nigeria.
The Kenyan refinery is expected to supply diesel, petrol and jet fuel to Kenya, with additional products exported to other countries across East Africa, as reported by Reuters.
Two-year development saving
Honeywell said its experience with Dangote’s Nigerian refinery could help shorten the Kenyan project’s development schedule by nearly two years, or about 30% compared with a typical newly constructed facility.
“Through our long-standing relationship with Dangote, we have developed proven large-train engineering designs that can be applied to the Kenya refinery to significantly reduce time-to-market,” Honeywell Technologies UOP president Rajesh Gattupalli said, according to Reuters.
BusinessDay reported that the refinery will be able to process a broad range of crude grades, from light to heavy, while producing gasoline, diesel, jet fuel and polypropylene.
Dangote said the project forms part of his efforts to increase Africa’s refining capacity and strengthen energy security.
“Dangote is committed to expanding Africa’s refining capacity and strengthening long-term energy security for the continent while also serving growing export markets,” he said in a statement carried by Honeywell.
The project has, however, faced opposition from some landowners and conservationists. Reuters previously reported that a Kenyan court ruling over a land rights dispute could affect some site activities, although Dangote said it would not stop the groundbreaking.
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Compiled by Betha Madhomu
