Dangote awards $350m refinery expansion contract to India’s EIL

In a major boost to Africa’s energy sector, Nigeria’s Dangote Group has awarded a contract worth more than $350 million to India’s state-owned Engineers India Limited (EIL) to oversee the ambitious expansion of its flagship refinery and petrochemical complex in the Lekki Free Zone.

The agreement, announced recently, positions EIL as the Project Management Consultant (PMC) and Engineering, Procurement, and Construction Management (EPCM) consultant for the project. This marks a continuation of the successful collaboration between the two companies, as EIL previously played a key role in delivering the existing 650,000 barrels-per-day (bpd) refinery, which was commissioned in 2024 and is currently the world’s largest single-train facility.

The expansion will add a second processing train, more than doubling the refinery’s crude oil processing capacity from 650,000 bpd to 1.4 million bpd. Upon completion, the complex will become the world’s largest petroleum refinery operating at a single location. The upgraded facility will focus on producing Euro VI-compliant fuels, aligning with stringent global emissions standards and upgrading from the current Euro V-grade gasoline, diesel, jet fuel, and other products.

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Beyond refining, the project includes significant enhancements to the petrochemical segment. Dangote plans to triple polypropylene production from 830,000 tonnes per annum to 2.4 million tonnes per annum. This will involve revamping the existing polypropylene unit, installing a new 1.2 million-tonne unit, and adding a 750,000-tonne UOP Oleflex unit to bolster propylene feedstock supply.

The Dangote Group emphasized the strategic importance of the initiative, stating that the expanded refinery will strengthen fuel production across Africa, reduce the continent’s heavy reliance on imported refined petroleum products, and enhance regional energy security. Nigeria, despite being Africa’s largest crude oil producer, has long depended on imports for refined fuels, a challenge the project aims to address decisively.

EIL highlighted the renewed partnership as a testament to the confidence in its technical expertise and project delivery capabilities. “Dangote Group has once again joined hands with EIL in this endeavour and has signed a contract agreement valued at more than $350 million,” the company noted.