Dangote Group has signed a contract worth more than $450 million with Engineers India Limited (EIL), extending its long-running partnership with the state-run Indian engineering firm to a new refinery project in East Africa.
EIL, the state-run engineering consultancy, disclosed the agreement to serve as project management and EPCM consultant for Dangote’s planned 700,000-barrel-per-day greenfield refinery and petrochemical plant in Kenya, according to a filing on the Mumbai stock exchange.
The deal was confirmed in a filing on the Mumbai stock exchange, with EIL majority-owned by the Indian government.
The contract is EIL’s second major engagement with Dangote which is its role as consultant on Dangote’s 650,000-bpd Lekki Free Zone refinery in Nigeria — currently the world’s largest single-train refinery — and its ongoing expansion to 1.4 million bpd.
That relationship dates back more than a decade: EIL first worked with Dangote on the Nigerian refinery’s project management services in 2014 and has since returned for the facility’s expansion to 1.4 million barrels per day earlier this year.
The new project will be sited on Kenya’s coast.
The planned refinery is a 700,000-barrel-per-day greenfield facility and petrochemical plant located in Lamu, Kenya.
In July, Dangote Industries Limited estimated that the proposed refinery would cost $17 billion and take about five years to complete, although Aliko Dangote more recently said construction would begin by the end of September, with completion expected within about three years.
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