Dangote Group signs $350 million deal with Indian company to expand refinery.

Nigeria's Dangote Group recently signed a cooperation contract exceeding $350 million with the Indian engineering consultancy EIL, appointing EIL as the project management and engineering, procurement, and construction management (EPCM) consultant to fully advance the large-scale expansion of its landmark refining and petrochemical project. This expansion will significantly increase the daily production capacity of the Dangote Refinery in Lagos from the current 650,000 barrels to 1.4 million barrels. Upon completion, this refining and petrochemical complex will become the world's largest single-train refinery.

The expansion project includes multiple core construction and upgrade initiatives: the construction of a second refinery train focused on producing Euro VI standard fuels to enhance the quality and international compatibility of refined products; the revamping of existing polypropylene facilities and the addition of new production lines to increase annual polypropylene capacity from 830,000 tons to 2.4 million tons, significantly expanding petrochemical output; and the simultaneous construction of an 750,000-ton-per-year olefin cracker to secure independent propylene supply for polypropylene production.

The Dangote Refinery officially commenced operations in 2024, with its initial capacity already serving as a key landmark asset reshaping Africa's energy landscape. EIL previously provided engineering design and project management services for the refinery's first phase, establishing a solid foundation for collaboration between the two parties.

The core objective of Dangote Group's refinery expansion is to strengthen Nigeria's position as a hub for refined products and petrochemicals in Africa. By substantially increasing local production capacity for fuels and chemicals, the project aims to reduce the region's reliance on imports and further enhance Africa's energy security.