Dangote awarded PMC and EPCM contracts to EIL
The privately-owned Dangote Group selected the Indian state-owned engineering company Engineers India Ltd (EIL) to provide engineering, procurement and construction management (EPCM) services for the $9 billion refinery and petrochemical complex to be built at Olokola in Nigeria.
With interests in the cement, food and beverage industry and more recently in agriculture, Dangote represents about 30% of the Nigeria stock exchange and expand its operations in the whole Africa sub-Sahara region.
Although Nigeria is Africa largest crude oil producer and exporter, it is also the largest importer of refined products.
This unbalanced situation is not only due to the expansion of the domestic consumption but also to the regular decline of the productivity in the Nigerian refineries still in operations.
Currently the four local refineries, located in Port Harcourt, Kaduna and Warri, are running at about 20% only of their total capacity of 445,000 barrels per day (b/d).
While the population in Nigeria is expected to reach 200 million inhabitants in 2020, Dangote realized that this country could not continue to rely on 80% import of refined products.
Dangote and EIL selected UOP Honeywell technology
With the project budgeted to require $9 billion capital expenditure, Dangote brought on the table $3 billion in equities from his own Group and another $3.3 billion by loans from a pool of 12 banks.
The remaining part of the financing should be completed by 2016.
In the meantime, Dangote is moving ahead to build this refinery designed with a capacity of 400,000 b/d.
This Dangote Refinery project should include:
– Single train residue fluid catalytic cracker
– Diesel hydrotreating unit
– CCR unit
– Offsite and Utilities
– Integrated power plant
Then the petrochemical complex will cover the:
– Alkylation unit
– Polypropylene units with 600,000 tonnes per year (t/y) capacity.