Aliko Dangote has hired India’s state-owned Engineers India Ltd. (EIL) to provide engineering and project-management services for a planned $16 billion refinery and petrochemical complex in Kenya.
The refinery, which is expected to be built in the coastal town of Lamu, will have a processing capacity of 700,000 barrels of crude oil per day, making it larger than Dangote’s 650,000-barrel-per-day refinery in Lagos.
Engineers India signed a contract worth more than $450 million to serve as project management consultant and engineering, procurement and construction management consultant for the greenfield project.
The Indian company previously worked on Dangote’s refinery in Lagos and is also involved in the ongoing expansion of that facility.
“Once completed, this project will be critical in strengthening fuel production within East Africa, reducing reliance on imports, and supporting regional energy security,” Engineers India said.
Dangote said construction of the Kenyan refinery is expected to begin before the end of September, with the overall project estimated to cost $16 billion.
The Lamu refinery is expected to expand Dangote’s presence beyond West Africa and give the group a significant foothold in East Africa’s energy market.
The project is also expected to support regional fuel supply and reduce the dependence of East African countries on imported refined petroleum products.
Alongside the refinery, Dangote plans to develop a wider pipeline network linking Lamu with Ethiopia and another connection between Djibouti and Ethiopia.
The proposed network is expected to cover about 4,000 kilometres and connect landlocked countries in the region to energy infrastructure and supply routes.
The Kenyan refinery will complement Dangote’s operations in Nigeria, where the company is planning to increase the capacity of its Lagos refinery to 1.4 million barrels per day by 2029.
Dangote has also announced plans to invest heavily across Africa as it expands its business operations on the continent.
The company is targeting $100 billion in revenue by 2030 and has outlined plans to invest as much as $50 billion over the next four years across its businesses.
For Kenya and the wider East African region, the proposed refinery could increase local refining capacity, strengthen fuel supply and reduce exposure to international refined-product imports.
However, the project’s scale means financing, crude supply, infrastructure and the economics of transporting petroleum products across the region will remain important factors as development progresses.
