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Home Business news

Dangote Signs $350m Deal With India’s EIL to Expand Refinery to 1.4m bpd

Victoria Emeto by Victoria Emeto
January 19, 2026
in Business news
0
Dangote Signs $350m Deal With India’s EIL to Expand Refinery to 1.4m bpd

Dangote Group has signed a contract valued at over $350 million with India’s state-owned Engineers India Limited (EIL) for a major expansion of its refinery operations.

The development was disclosed in a statement released by EIL, which confirmed that the agreement will see the upgrading of the facility’s capacity from 650,000 barrels per day to 1.4 million barrels per day.

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

Under the agreement, EIL will act as both the Project Management Consultant (PMC) and the Engineering, Procurement, and Construction Management (EPCM) consultant for the project. The Indian firm previously played the same role in the delivery of the existing 650,000 barrels-per-day refinery, which was commissioned in 2024.

The project also includes a significant scale-up of petrochemical production. Dangote plans to increase polypropylene output from 830,000 tonnes per annum to 2.4 million tonnes per annum.

This will be achieved by revamping the existing polypropylene unit, installing an additional 1.2 million-tonne unit, and adding a 750,000-tonne UOP Oleflex unit to enhance propylene feedstock supply.

Commenting on the renewed partnership, EIL said the agreement reflects Dangote Group’s confidence in its engineering expertise and project delivery capacity.

“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,” the company said.

EIL added that once completed, the expansion would position Dangote as the world’s largest petroleum refinery.

“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 statement noted.

It further described the proposed expansion to 1.4 million barrels per day as a project of global significance that would rank among the largest refinery complexes located at a single site.

The company said it would deploy its decades of experience and global execution model to deliver the project successfully.

Earlier, Dangote Group President, Aliko Dangote, had disclosed plans to double the refinery’s capacity in an interview with S&P Global. He revealed that 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 per cent stake in the refinery on the Nigerian Exchange in 2026.

Tags: #AfricaEnergy#DangoteRefinery#EnergyBusiness#Petrochemicals
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