Aliko Dangote has awarded a $450 million contract to Engineers India Limited (EIL) for the development of his proposed $16 billion refinery and petrochemical complex in Kenya.
The Indian state-owned engineering consultancy will oversee the construction of the planned 700,000-barrels-per-day refinery in Lamu, a coastal town in Kenya.
EIL disclosed the contract in a filing with the Mumbai stock exchange, according to the Times of India, marking another major expansion of Dangote’s interests in Africa’s downstream oil and gas sector.
The Indian company has a previous relationship with Dangote, having participated in the development of the 650,000-barrels-per-day Dangote Petroleum Refinery in Lagos. It is also involved in the ongoing expansion of the Nigerian facility.
EIL said the Kenyan project would have significant implications for the region’s energy supply.
“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.
Dangote had earlier indicated that work on the Kenyan refinery would begin before the end of September.
The proposed facility, with a crude-processing capacity of 700,000 barrels per day, is expected to become one of the largest refining projects planned for Africa if completed as proposed.
The project is also linked to a wider energy infrastructure plan involving the construction of pipelines between Lamu and Ethiopia, as well as a proposed connection between Djibouti and Ethiopia.
The planned infrastructure forms part of Dangote’s ambition to develop a 4,000-kilometre pipeline network connecting landlocked countries across the region and facilitating access to energy supplies.
The Kenyan investment would further broaden Dangote’s refining footprint, which is currently centred on his massive refinery in Lagos.
The Nigerian refinery has a capacity of 650,000 barrels per day, with plans to increase this to 1.4 million barrels per day by 2029.
A successful expansion into Kenya would give Dangote’s refining business a presence on both the Atlantic and Indian Ocean coasts, reinforcing his position in Africa’s downstream petroleum market.
Dangote is also targeting annual revenue of $100 billion for the Dangote Group by 2030. The businessman has said he plans to invest up to $50 billion over the next four years in expanding the conglomerate’s operations across Africa.
The Bloomberg Billionaires Index puts Dangote’s net worth at $35.5 billion.
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