UOP LLC, a unit of diversified conglomerate Honeywell International Inc.HON , announced that the largest refinery in Africa will be equipped with UOP's process technology, catalysts and proprietary equipment. UOP's technology will assist Nigeria in reducing its reliance on imported fuels and petrochemicals.
Nigeria boasts the second-largest proven oil reserves in Africa - which are estimated to be about 37.2 billion barrels according to the Oil & Gas Journal.
Nonetheless, the country has to rely on imports to meet its demand for refined products for the most part, due to deficient domestic refining capacity. To build up the same, the Dangote Oil Refining Company is building a massive integrated refinery and petrochemical plant in Lekki, near the capital of Lagos in southwestern Nigeria.
The facility will process crude oil to produce high-quality gasoline, diesel and jet fuel in conformity with Euro V specifications for reduced emissions. In addition, it will produce world-scale quantities of polypropylene, a key petrochemical that is used in plastics and packaging.
With extensive experience in designing state-of-the-art refineries and petrochemical plants that spans over a century, UOP is well-equipped to aid Nigeria in developing a world-scale new plant to cater to its domestic demand.
The Dangote Group is the biggest industrial conglomerate in West Africa and one of the largest in Africa. Through this project, Dangote will be able to develop Nigeria's oil refining capabilities, which will help revitalize and transform the Nigerian economy.
Apart from technology licensing and design services, UOP will also be supplying Dangote Oil Refining Company with catalysts, adsorbents and proprietary equipment for the project.
Honeywell currently has a Zacks Rank #3 (Hold). Stocks that look promising and are worth a look now include Gentherm Incorporated. THRM , SORL Auto Parts, Inc. SORL and Sumitomo Corporation SSUMY , each carrying a Zacks Rank #2 (Buy).
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