EIL Secures Over $350M Nigeria Refinery Expansion Contract

ENERGY
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AuthorAnanya Iyer|Published at:
EIL Secures Over $350M Nigeria Refinery Expansion Contract
Overview

State-run Engineers India Ltd (EIL) has inked a significant contract exceeding $350 million with Nigeria's Dangote Group. The deal appoints EIL as project management and EPCM consultant for the flagship refinery's expansion, aiming to boost capacity and petrochemical output. This project reinforces Nigeria's ambition to become a regional energy hub.

EIL Lands Major African Deal

Engineers India Ltd (EIL) announced Saturday it secured a contract worth over $350 million, approximately ₹3,170 crore, with Nigeria's Dangote Group. The agreement tasks EIL with providing project management consultancy (PMC) and engineering, procurement, and construction management (EPCM) services for the expansion of Dangote's flagship refinery.

Boosting Refining and Petrochemical Capacity

The expansion project aims to add a second train to the refinery, more than doubling its crude oil processing capacity from the current 650,000 barrels per day to 1.4 million barrels per day. The facility will produce Euro VI grade fuels. Additionally, the project includes expanding Polypropylene production capacity from 830,000 tonnes per annum (TPA) to 2.4 million TPA, incorporating a new 1.2 million TPA Polypropylene unit and a UOP Oleflex Unit.

Strategic Significance for Nigeria and Africa

This expansion is a crucial step in Nigeria's strategy to establish itself as a leading regional hub for refined petroleum products and petrochemicals. Upon completion, the Dangote refinery complex is set to become the world's largest petroleum refinery at a single location, significantly enhancing fuel production within Africa and reducing import reliance.

EIL's Role and Expertise

EIL highlighted that this contract is a strong testament to its capabilities in handling large-scale and complex projects. The company will leverage its decades of experience and multidisciplinary expertise to support Dangote in developing one of the world's most advanced integrated energy complexes. The Lagos-headquartered Dangote Group is a major industrial force in West Africa with diversified interests across multiple sectors.

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