Dangote Refinery Expansion: $350 Million Deal Signed with Indian Firm EIL

State-run Engineers India Ltd (EIL) said on Saturday that it has renewed its $350 million contract with Dangote Group to help expand the Lagos refinery and petrochemicals complex. Dangote Group plans to add a second train to expand its refining capacity from 650,000 barrels per day to 1.4 million barrels per day producing Euro VI fuels. Consequently, Engineers India Ltd (EIL) has renewed its contract to act as Project Management Consultant (PMC) and Engineering, Procurement, and Construction Management (EPCM) consultant, repeating the role it played during the refinery’s original construction in 2024. ADVERTISEMENT If completed, the project would place the facility among the largest refinery complexes in the world at a single location. Project Cost and Operational Timeline The refinery, located in the Lekki Free Zone, is estimated to have cost around $19 billion, making it one of the most expensive industrial projects ever undertaken in Africa. The complex was officially inaugurated in May 2023 and has since been ramping up operations in phases due to its scale and technical complexity. By early 2024, the refinery began producing diesel and aviation fuel, followed later by petrol, marking a turning point for Nigeria, which has long relied on imports for most of its refined fuel needs despite being Africa’s largest crude oil producer. ADVERTISEMENT Its existing 650,000 barrels-per-day integrated refinery and petrochemical complex in the Lekki Free Zone is already the world’s largest single-train refinery, producing Euro-V quality gasoline, diesel, jet fuel and polypropylene. ece-auto-gen Expansion of Petrochemicals Capacity Beyond fuels, Dangote Group is expanding its petrochemicals footprint. The Group is increasing polypropylene production from 830,000 tonnes per annum (TPA) to 2.4 million TPA by revamping its existing Polypropylene Unit (PPU) and installing an additional 1.2 million TPA PPU, alongside a world-scale 750 kTPA UOP Oleflex unit to supplement propylene feedstock. “Dangote Group has once again joined hands with EIL in this endeavour and has signed a contract agreement of value more than $350 million to engage EIL as project management consultant (PMC) and engineering, procurement and construction management (EPCM) consultant for this project,” EIL noted. ADVERTISEMENT “This contract is a strong affirmation of the trust reposed in EIL’s capabilities to deliver projects of exceptional scale and complexity. 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 CPSU said. Dangote Group: Africa’s Industrial Powerhouse Dangote Group is Nigeria’s largest multinational conglomerate and one of Africa’s most influential industrial players. With operations spanning oil and gas, mining, petrochemicals, fertilisers, cement, sugar, and food processing, the Group operates across 17 African countries and ranks among the continent’s largest private-sector employers. Today, the Dangote Refinery sits at the centre of Nigeria’s energy transition. ADVERTISEMENT While challenges around crude supply, pricing, and regulation persist, the facility has already begun easing fuel shortages, reducing import dependence, and positioning Nigeria as a potential exporter of refined products across West and Central Africa, underscoring its broader significance for the continent’s industrial future.