Nigeria’s Dangote Group has awarded India’s state-owned Engineers India Limited (EIL) a contract worth more than $450 million to provide project management and engineering services for its planned refinery and petrochemical complex in Lamu, Kenya.
The contract covers Project Management Consultancy (PMC) and Engineering, Procurement and Construction Management (EPCM) services for the proposed 700,000-barrel-per-day greenfield refinery. The $450 million contract is for engineering and project-management services and is separate from the much larger cost of constructing the refinery itself.
The Lamu project is expected to become one of East Africa’s largest energy infrastructure developments. Dangote has previously indicated that the refinery is intended to reduce the region’s dependence on imported refined petroleum products while supplying fuel to Kenya, neighbouring countries and international markets.
EIL expands its relationship with Dangote
Engineers India is not new to Dangote’s refining projects. The company previously served as the project management and EPCM consultant for Dangote’s 650,000-barrel-per-day refinery and petrochemical complex at Lekki in Nigeria. It is also involved in the planned expansion of that facility to 1.4 million barrels per day.
The new Kenyan contract therefore extends an existing partnership between the two companies and gives EIL responsibility for coordinating engineering, procurement, construction management, project schedules, costs, quality and safety for the Kenyan development.
Major investment in Kenya’s energy sector
The planned refinery is part of Dangote’s broader expansion across Africa. The company selected Lamu as the location for the project, with the site benefiting from access to the port and regional markets.
Reuters reported in July that Dangote planned to finance the refinery through a combination of internal cash, bonds and a planned IPO. At the time, the company said site selection, soil testing and engineering work had already begun.
The planned facility is expected to process a wider range of crude oils and produce petroleum products for the East African market and international destinations.
The award of the $450 million engineering contract represents another significant step toward the development of Dangote’s proposed Kenyan refinery, although the overall construction cost and completion timeline remain separate from the engineering contract.
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