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Dangote Group, Indian firm sign $350m deal for refinery expansion



The Engineers India Limited (EIL) says it has signed a $350 million contract agreement with Dangote refinery as project management consultant (PMC) and engineering, procurement and construction management (EPCM) consultant for the refinery’s expansion.

 

The EIL is an Indian engineering consultancy firm.

 

On October 26, Aliko Dangote, the founder of Dangote Group, said the Dangote refinery was expanding its production capacity from 650,000 barrels per day (bpd) to 1.4 million bpd.

 

In a recent statement, EIL said it partnered with the Dangote Group as the PMC and EPCM consultant for the 650,000 bpd refinery, commissioned in 2024.

 

 

“Believing in EIL’s Engineering and Project Management excellence, Dangote Group has once again joined hands with EIL in this endeavor and has signed a Contract Agreement of value more than US $ 350 Million to engage EIL as PMC and EPCM Consultant for this Project,” the statement reads.

 

As part of the expansion plans, the EIL said Dangote plans to add a second processing train, which will produce Euro VI grade fuels.

 

 

The company said the refinery also plans to expand its polypropylene production from 830 kilo tonnes per annum (KTPA) to 2.4 million metric tonnes per annum (MMTPA) polypropylene by revamping the existing polypropylene unit (PPU) and installing additional PPU of 1.2 MMTPA.

 

 

Dangote refinery, according to the statement, also intends to scale-up production for a world scale “750 kTPA UOP’s Oleflex Unit to supplement propylene feed to PPU”.

 

 

“The latest expansion further reinforces Nigeria’s mission to become a regional hub for refined petroleum products and petrochemicals,” the statement reads.

 

Once completed, EIL said the expansion will position Dangote refinery as the world’s largest petroleum refinery, strengthening fuel production within Africa, reducing reliance on imports, and supporting regional energy security.

 

“This Contract is a strong affirmation of the trust reposed in EIL’s capabilities to deliver projects of exceptional scale and complexity,” the company said.

 

“As we move into this next phase, EIL will bring its decades of experience, multidisciplinary strengths, and global execution model to support Dangote in creating one of the world’s most advanced and fully integrated energy complexes.”

 

The Indian firm added that the proposed expansion to 1.4 million bpd is a project of global significance and will stand among the largest refinery complexes at a single location.

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