Key Takeaways:
- Engineers India will provide project management and engineering consultancy services for Dangote’s planned Kenya refinery.
- The greenfield refinery will have a capacity of 700,000 barrels per day.
- The project is expected to strengthen fuel supply and reduce reliance on petroleum imports in East Africa.
India’s firm, Engineers India Limited, has secured a $450 million contract from Dangote Group to provide project management and engineering consultancy services for its planned 700,000-barrel-per-day refinery and petrochemical plant in Kenya.
Engineers India Limited (EIL), a state-owned engineering consultancy under India’s Ministry of Petroleum and Natural Gas, signed the contract agreement with Dangote Group for the greenfield project.
According to industry sources, the company will serve as Project Management Consultant and Engineering, Procurement and Construction Management consultant for the refinery.
The contract expands the relationship between EIL and Dangote, after the Indian company provided similar consultancy services for Dangote’s refinery and petrochemical complex in Nigeria.
EIL said the new agreement reflects Dangote’s confidence in its ability to manage large and complex energy projects.
“Once completed, this project will be critical in strengthening fuel production within East Africa, reducing reliance on imports, and supporting regional energy security, and further playing a critical role by supplying the petroleum products to global market,” EIL said.
Dangote’s 700,000-bpd refinery takes shape
The planned refinery will be developed as a greenfield project in Kenya and will have a processing capacity of 700,000 barrels per day.
Dangote Industries identified Lamu on Kenya’s coast as the proposed location for the refinery in July.
The company said engineering and design work had started, with construction expected to take about 30 months once the project moves into the construction phase.
The refinery is expected to supply petroleum products to Kenya and neighbouring countries while also serving wider international markets.
The project would expand Dangote’s refining footprint beyond Nigeria, where its 650,000-barrel-per-day refinery is already operating at the Lekki Free Zone.
EIL’s involvement also builds on its experience with the Nigerian refinery. The company says it provided EPCM and PMC services for Dangote’s 650,000-barrel-per-day refinery and 830,000-tonne-per-year petrochemical complex in Nigeria.
The Kenya project is part of Dangote’s wider strategy to expand its energy and industrial operations across Africa.
EIL expands role in Dangote’s African projects
EIL said the $450 million agreement strengthens its position in Africa’s refining and energy infrastructure market.
The Indian company has worked on refinery, gas processing, petrochemical and other energy projects across Africa and the Middle East. Its work with Dangote in Nigeria gave it experience with the group’s project development and engineering requirements.
The Kenya refinery is expected to reduce the region’s dependence on imported refined petroleum products by increasing local refining capacity.
East African countries rely heavily on imported petroleum products to meet domestic fuel demand.
A large refinery in Kenya could therefore alter regional fuel supply flows by providing a new source of refined products for Kenya and neighbouring markets.
For Dangote, the project represents another major investment in refining after the completion of its Nigerian refinery, while for EIL, the contract extends its involvement in one of Africa’s largest planned downstream energy projects.
EIL said the project demonstrates the trust placed in its capabilities to deliver projects of significant scale and complexity.
