Indian firm bags $350M contract for Africa's biggest oil refinery
What's the story
Engineers India Limited (EIL), a state-owned company, has won a contract worth over $350 million from Nigeria's Dangote Group. The contract is for the expansion of Dangote's flagship refinery and petrochemical complex in Nigeria. EIL will be serving as the Project Management Consultant (PMC) and Engineering, Procurement and Construction Management (EPCM) consultant for this project.
Project details
Dangote Group's ambitious expansion plans
The Dangote Group, Nigeria's largest conglomerate, is planning to double its refining capacity from 650,000 barrels per day to 1.4 million barrels. The expansion will also include the production of Euro VI-grade fuels. Along with this, the group is also looking to ramp up its polypropylene production from 830 kilo tons per annum (kTPA) to a whopping 2.4 million metric tons per annum (MMTPA).
Past collaboration
EIL's previous experience with Dangote Group
EIL had earlier worked as PMC and EPCM consultant for the original 650,000 barrels-per-day integrated refinery and petrochemical complex at the Lekki Free Zone. The facility, that was commissioned in 2024, is considered a landmark project for Africa's energy and industrial ecosystem. It produces Euro-V quality petrol, diesel, jet fuel, and polypropylene.
Strategic move
New expansion to boost regional energy security
The new expansion will make the Dangote facility the world's largest petroleum refinery, boosting fuel production in Africa and reducing dependence on imports. This will also improve regional energy security. "The latest expansion further reinforces Nigeria's mission to become a regional hub for refined petroleum products and petrochemicals," EIL said in a statement.