Dangote Group has awarded Engineers India Ltd. (EIL) a contract worth more than $450 million to provide project management and engineering services for a planned refinery and petrochemical complex in Lamu, Kenya.
The Indian state-controlled engineering consultancy will serve as the Project Management Consultant (PMC) and Engineering, Procurement and Construction Management (EPCM) consultant for the greenfield project, which is planned to have a crude-processing capacity of 700,000 barrels per day.
The contract covers the coordination of engineering, procurement and construction management, including costs, schedules, quality and safety, according to Engineers India.
Dangote has said the Lamu project will cost about $16 billion. Construction is expected to begin by the end of September, with a groundbreaking ceremony planned for Sept. 30 at the Lamu Special Economic Zone.
The planned facility is designed to strengthen fuel production in East Africa, reduce the region’s reliance on imported refined petroleum products and supply international markets, Engineers India said.
The project will expand Dangote’s refining operations beyond Nigeria. The group already operates its 650,000-barrel-per-day refinery in Lagos, while an expansion is planned to increase its capacity to 1.4 million barrels per day. Engineers India was involved in the development of the Lagos refinery and is also working on its expansion.
The Lamu project is also part of Dangote’s broader plans to develop energy infrastructure connecting East African markets. The group has outlined plans for pipeline links involving Lamu, Ethiopia and Djibouti as part of a proposed regional network.
The refinery is expected to supply Kenya and neighbouring landlocked countries, while also creating capacity for exports beyond the region. Reuters reported in July that Dangote planned to finance the project through a combination of internal cash flow, bonds and an initial public offering.
The $450 million-plus contract awarded to Engineers India covers consultancy and project-management services and should not be confused with the estimated $16 billion cost of building the refinery and petrochemical complex itself.
