Dangote Group finalizes contract for Nigerian refinery

Nigerian conglomerate Dangote Group has officially entered an agreement with Engineers India Ltd. (EIL) for project management consultancy (PMC) and engineering, procurement, and construction management (EPCM) for a grassroots refinery and polypropylene plant in Nigeria (OGJ Online, Nov. 25, 2013).

The contract, which was officially signed in early June, is valued at $139 million, says EIL.

EIL will provide project PMC and EPCM services for implementing the 400,000-b/d refinery and 600,000-tonne/year polypropylene plant in in Lekki Free Trade Zone near Lagos, Nigeria, EIL said.

Dangote Group earlier had planned to cite the refinery and petrochemical project in the free-trade zone of Nigeria’s Ogun state (OGJ Online, June 17, 2014).

The refinery project will include a crude distillation unit, single-train residual fluid catalytic cracking unit, diesel hydrotreating unit, continuous catalyst regeneration unit, alkylation unit, polypropylene unit, as well as utilities and off sites, including a captive power plant and associated infrastructure, according to EIL.

A single-point mooring terminal for crude oil and product handling also would be integrated with the refinery, EIL said.

The official solidification of the agreement with Dangote—which was first announced late last year (OGJ Online, Nov. 25, 2013)—makes this EIL’s largest ever single consultancy assignment, the company said.

The announcement of the EIL contract follows African Development Bank’s June 13 approval of a $300 million loan to Dangote Group for the construction and operation of both the greenfield petrochemical complex and a fertilizer manufacturing plant (OGJ Online, June 17, 2014).

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