Africa’s richest man picks India-owned firm for $16 billion project
EIL will play a major role in the project with a contract of over $450 million, covering all aspects from engineering, procurement and construction management
Aliko Dangote, Africa's wealthiest individual, has chosen Engineers India Ltd (EIL), a company with significant ownership by the Indian government, to oversee his ambitious $16 billion refinery and petrochemical complex in Kenya. This contract, valued at over $450 million, encompasses all stages from engineering to construction management.
The refinery, set to be built on Kenya's Lamu coast, will have a capacity of 700,000 barrels of crude oil per day, surpassing Dangote's existing refinery near Lagos which handles 650,000 barrels daily. This project is a continuation of a long-standing partnership between Dangote and EIL, who have previously collaborated on Dangote's Lagos refinery and its expansion plans.
With construction expected to commence this month and last less than four years, the refinery is part of Dangote's strategy to expand his energy business footprint across Africa. However, the project faces several challenges, including Kenya's lack of commercial-scale crude production, dependence on seaborne imports initially, and competition from cheaper imported fuel.
Financing for the refinery is anticipated to come from 70% debt and 30% equity. Despite these obstacles, the project has the potential to significantly impact Kenya's fuel sourcing and processing, potentially creating a stronger connection among East Africa's energy markets.
Written by urgent.news from Hindustan Times - World News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
