Dangote Hands $450m Kenya Refinery Contract to Indian Firm that Built Lagos Plant
Engineers India Ltd., the state-backed engineering firm that helped deliver Aliko Dangote’s Lagos refinery, has secured a $450 million contract to oversee construction of his planned refinery and petrochemical complex in Kenya.
The proposed 700,000-barrel-per-day facility will be built in Lamu, a coastal town on the Indian Ocean. Construction is expected to begin by the end of September, with the project estimated to cost $16 billion.
Engineers India, which is majority-owned by the Indian government, announced the contract in a filing with the Mumbai Stock Exchange.
“Once completed, this project will be critical in strengthening fuel production within East Africa, reducing reliance on imports and supporting regional energy security,” the company said.
The Kenyan refinery will mark a major expansion of Dangote’s energy interests into East Africa, extending his industrial footprint from the Atlantic coast to the Indian Ocean and strengthening his position in the global energy market.
It will complement the Dangote Petroleum Refinery in Lagos, whose production capacity is expected to double from about 650,000 barrels per day to 1.4 million barrels per day by 2029.
Engineers India, which operates under India’s Ministry of Petroleum and Natural Gas, served as a consultant on the Lagos refinery and is overseeing its continuing expansion.
Alongside the Kenyan refinery, Dangote plans to develop a pipeline connecting Lamu to Ethiopia, as well as another link between Djibouti and Ethiopia. The projects form part of a proposed 4,000-kilometre pipeline network intended to connect landlocked countries across the region.
The developments could help improve the movement of petroleum products in East Africa while reducing the region’s dependence on imported refined fuel.
Dangote, Africa’s richest person, has a net worth of $35.5 billion, according to the Bloomberg Billionaires Index. He plans to invest as much as $50 billion over the next four years to expand his business empire across Africa.
The Nigerian industrialist is targeting annual revenue of $100 billion for the Dangote Group by 2030.
