Dangote Signs $350 Million Deal with EIL for Lagos Refinery Expansion
Dangote Group, Nigeria's largest multinational conglomerate, has secured a $350 million deal with Engineers India Ltd (EIL) to expand its flagship refinery and petrochemicals complex in Lagos. This ambitious project aims to boost Nigeria's industrial capacity and reduce Africa's reliance on imported refined fuels. The expansion will increase refining capacity from 650,000 barrels per day to 1.4 million barrels per day, producing Euro VI fuels.
The contract renewal with EIL, a state-run engineering firm, signifies a continuation of their role as Project Management Consultant (PMC) and Engineering, Procurement, and Construction Management (EPCM) consultant, mirroring their involvement in the refinery's original construction in 2024. This partnership is pivotal in transforming the Lagos refinery into one of the world's largest refinery complexes at a single location.
Project Details and Impact
The refinery, situated in the Lekki Free Zone, is estimated to have cost around $19 billion, making it one of the most expensive industrial projects in Africa. It officially commenced operations in May 2023, with initial phases focusing on diesel and aviation fuel production. This marked a significant shift for Nigeria, which has historically relied on imports for most of its refined fuel needs, despite being Africa's largest crude oil producer.
The existing 650,000 barrels-per-day integrated refinery and petrochemical complex in Lekki Free Zone is already the world's largest single-train refinery, producing Euro-V quality gasoline, diesel, jet fuel, and polypropylene. The expansion will further solidify its position as a leading energy complex.
Expanding 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.
EIL's Role and Significance
EIL's involvement in this project is a testament to their expertise and trust in their capabilities. The contract reinforces their role in delivering projects of exceptional scale and complexity. With decades of experience, multidisciplinary strengths, and a global execution model, EIL will support Dangote in creating one of the world's most advanced and fully integrated energy complexes.
Dangote Group's Industrial Powerhouse
Dangote Group's operations span oil and gas, mining, petrochemicals, fertilizers, cement, sugar, and food processing, with a presence in 17 African countries. It is one of Africa's most influential industrial players and a significant private-sector employer. The Dangote Refinery is pivotal in Nigeria's energy transition, easing fuel shortages, reducing import dependence, and positioning Nigeria as a potential exporter of refined products across West and Central Africa.
This deal highlights Dangote Group's commitment to expanding its industrial footprint and its role in shaping Africa's industrial future.
