EIL Secures $350m Deal to Drive Major Dangote Refinery Expansion
Engineers India Limited (EIL) has been appointed to oversee a massive expansion of the Dangote Petroleum Refinery in Lagos, Nigeria, a project that will more than double the facility’s production capacity from 650,000 barrels per day to 1.4 million barrels per day.
The Indian engineering company confirmed the development in a statement on Monday, announcing that it had signed a contract agreement valued at over $350 million with the Dangote Group.
Under the agreement, EIL will act as Project Management Consultant (PMC) and Engineering, Procurement and Construction Management (EPCM) consultant for the upgrade project.
EIL previously served in the same capacity during the construction of the existing 650,000 bpd refinery, which was commissioned in 2024. The firm said the new contract reflects the confidence the Dangote Group has in its technical expertise and delivery track record.
“Believing in EIL’s engineering and project management excellence, Dangote Group has once again joined hands with EIL in this endeavour and has signed a contract agreement of value more than $350m to engage EIL as PMC and EPCM consultant for this project,” the company stated.
The expansion project, referred to as Train 2, is expected to significantly boost Nigeria’s refining and petrochemical output. According to EIL, the upgraded facility will be capable of producing Euro VI-grade fuels while also increasing polypropylene production from 830 kilotonnes per annum to 2.4 million metric tonnes per annum.
The company explained that the increase would be achieved through the revamp of the existing polypropylene unit, the installation of an additional 1.2 million metric tonnes per annum polypropylene plant, and the addition of a 750 kilotonnes per annum UOP Oleflex unit to enhance propylene feedstock.
EIL noted that the project aligns with Nigeria’s broader ambition to strengthen its domestic refining capacity and reduce dependence on imported petroleum products.
The firm said the expansion “further reinforces Nigeria’s mission to become a regional hub for refined petroleum products and petrochemicals.”
Highlighting the strategic importance of the refinery, EIL described the current Dangote facility as “a transformative asset for Africa’s energy landscape,” adding that it “has reshaped Africa’s energy architecture and elevated the region as a major hub for world-class hydrocarbon assets across the entire value chain.”
The company further stated that the upgraded complex would “position Dangote as the world’s largest petroleum refinery, strengthening fuel production within Africa, reducing reliance on imports, and supporting regional energy security.”
EIL emphasized that the scale of the new project underscores the complexity of the undertaking and its global significance. It described the agreement as “a strong affirmation of the trust reposed in its capabilities to deliver projects of exceptional scale and complexity,” adding that it would deploy its “decades of experience, multidisciplinary strengths, and global execution model” to ensure successful delivery.
Plans to expand the refinery were first announced in November by the President of the Dangote Group, Alhaji Aliko Dangote, who revealed that the upgrade to 1.4 million barrels per day would make the facility the largest refinery in the world.
Providing an update on the project timeline, Managing Director of the Dangote refinery, David Bird, disclosed last week that the expansion could be completed within three years.
Bird also confirmed that the refinery is currently supplying about 50 million litres of petrol daily to the Nigerian market, noting that operations run round the clock to meet growing fuel demand.
Once completed, the expanded refinery is expected to play a critical role in reshaping Nigeria’s energy sector, strengthening domestic supply chains, and enhancing the country’s position in the global petroleum industry.
