Nigerian billionaire Aliko Dangote has selected US-based Honeywell Technologies to provide engineering services, technology licensing and equipment for the planned Sh2 trillion East African Refinery in Lamu. The technology and engineering works are valued at approximately $300 million (Sh39 billion), making Honeywell a major US industrial technology partner in the planned 700,000-barrel-per-day refinery. This significant development marks a major milestone in the project's progress.
The announcement was made on Wednesday as President William Ruto and Dangote broke ground for the refinery in Lamu County, marking the formal start of construction of one of Africa's largest planned refining projects. The refinery is expected to produce diesel, petrol and jet fuel for Kenya and other markets across East Africa. This project is a crucial component of Kenya's plans to strengthen energy security and reduce reliance on imported refined petroleum products.
Honeywell Technologies said it would provide technology licensing, engineering services and equipment for the refinery. The company said its involvement would build on its existing relationship with Dangote, including work at the Dangote refinery in Nigeria. This partnership dates back nearly a decade and has included work on the Nigerian group's refining and petrochemical operations. The experience gained from the Nigerian project will be applied to the Kenyan project.
According to Rajesh Gattupalli, president of Honeywell Technologies UOP, large-scale refinery projects require a combination of proven technologies, engineering expertise and digital capabilities. He noted that through their long-standing relationship with Dangote, they have developed proven large-train engineering designs that can be applied to the Kenya refinery to help significantly reduce time-to-market. This approach will help improve operational flexibility while supporting the project's objective of strengthening regional fuel supplies.
Honeywell said it would also provide modifications to enable the Lamu facility to process a wide range of crude feedstocks. The flexibility is expected to allow the refinery to source crude from different producers and regions, reducing reliance on a single crude source or supply route. This will be crucial in ensuring a stable and secure fuel supply for Kenya and other markets in the region.
The Lamu refinery is expected to serve Kenya, East Africa's largest economy, while also exporting refined petroleum products to other countries in the region. The project is being positioned as a major component of Kenya's plans to strengthen energy security, reduce reliance on imported refined petroleum products and establish Lamu as an industrial and energy hub. The project is expected to create thousands of direct and indirect employment opportunities while supporting businesses across logistics, engineering, manufacturing, marine services, energy and petrochemicals.
Dangote has also announced plans to establish a training school in Lamu that will train 1,000 local people for opportunities created by the refinery and associated industries. The businessman has set a 40-month timeline for completion of the refinery, expecting President Ruto and other African leaders to return to Lamu to commission the facility. With Honeywell selected for key technology and engineering works, the project is moving into a new phase as Dangote seeks to replicate its Nigerian refining experience in Kenya.
Key points
- The Lamu refinery is expected to produce diesel, petrol and jet fuel for Kenya and other markets across East Africa.
- Honeywell Technologies will provide technology licensing, engineering services and equipment for the refinery.
- The project is expected to create thousands of direct and indirect employment opportunities while supporting businesses across logistics, engineering, manufacturing, marine services, energy and petrochemicals.
