Dangote Refinery Signs $350M EIL Contract for 1.4M bpd Upgrade

Dangote Group has signed a contract valued at over $350 million with India’s state-owned Engineers India Limited (EIL).

The development was disclosed by EIL in a statement released recently. Under the agreement, EIL will serve as the Project Management Consultant (PMC) and Engineering, Procurement and Construction Management (EPCM) consultant for the expansion.

This replicates the role it played in the delivery of the existing 650,000 barrels-per-day refinery, which was commissioned in 2024.

The expansion will be executed through the addition of a second processing train and will focus on the production of Euro VI–compliant fuels.

Beyond refining, the project also includes a major scale-up of petrochemical output. Dangote plans to increase polypropylene production from 830,000 tonnes per annum to 2.4 million tonnes per annum by revamping its existing polypropylene unit, installing an additional 1.2 million-tonne unit, and adding a 750,000-tonne UOP Oleflex unit to boost propylene feedstock supply.

What they are saying

Engineers India Limited said the renewed engagement reflects confidence in its technical and project delivery capabilities.

“Believing in EIL’s Engineering and Project Management excellence, Dangote Group has once again join hands with EIL in this endeavor and has signed a Contract Agreement of value more than US $ 350 Million to engage EIL as PMC and EPCM Consultant for this Project.”
“Once completed, this expansion will position Dangote as the world’s largest petroleum refinery, strengthening fuel production within Africa, reducing reliance on imports, and supporting regional energy security.”
“The proposed expansion to 1.4 million barrels per day is a project of global significance and will stand among the largest refinery complexes at a single location.”

The company added that it will deploy its decades of experience and global execution model to deliver the project.

Backstory

The Dangote Refinery and Petrochemicals Complex is located in the Lekki Free Zone and is estimated to have cost around $19 billion, making it one of the most expensive industrial projects ever undertaken in Africa.

The complex was officially inaugurated in May 2023 and has been ramping up operations in phases due to its scale and technical complexity.

By early 2024, the refinery began producing diesel and aviation fuel, followed later by petrol.

The start of petrol production marked a major milestone for Nigeria, which has historically relied on imports for most of its refined petroleum products despite being Africa’s largest crude oil producer.

EIL previously played a similar PMC and EPCM role during the construction of the original refinery, which was commissioned in 2024.

Why this matters

The planned expansion has far-reaching implications for Nigeria and the wider African energy market.

Increasing capacity to 1.4 million barrels per day would significantly reduce Nigeria’s dependence on imported fuel. It would strengthen energy security across West Africa and support intra-African fuel trade.

The project positions Nigeria as a global refining hub at a time of tightening fuel quality standards worldwide.

Once completed, the expanded refinery is expected to surpass India’s 1.36 million barrels per day Jamnagar refinery to become the largest single-site refinery in the world.

What you should know

Nairametrics had earlier reported that Aliko Dangote disclosed plans to double the refinery’s capacity in an interview with S&P Global.

Dangote said the company is exploring new financing options and potential partnerships with Middle Eastern investors to support the expansion.

In December 2025, Dangote also announced plans to list a 10% stake in the refinery on the Nigerian Exchange in 2026.

He revealed that discussions are ongoing with regulators to enable future dividend payouts in US dollars, offering investors a hedge against currency volatility.