Share price of Engineers India climbed 5%, touching a new 52-week high on the stock circuit as the PSU announced its partnership with Nigerian conglomerate Dangote Group for the execution of the firm’s mega greenfield refinery and petrochemical plant in Kenya. The project is valued at $450 million.

Engineers India expands partnership with Dangote

The Navratna PSU has signed a contract agreement valued at $450 million with one of West Africa’s largest industrial conglomerates, Dangote. Under the scope of this project, Engineers India will carry out the company’s project management consultancy (PMC) and engineering, procurement, and construction management (EPCM) consultant work. 

The Kenya plant will have a capacity of 700,000 barrels per day. The facility is being set up in order to expand Dangote’s footprint in East Africa, and to help meet regional demand and process a wider crude basket. 

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“Once completed, this project will be critical in strengthening fuel production within East Africa, reducing reliance on imports, and supporting regional energy security, and further playing a critical role by supplying the petroleum products to global market,” the PSU said in its exchange filing. 

Through this partnership, Dangote is expanding its partnership with Engineers India. Previously, both companies had collaborated to commission Dangote’s 650,000 BPD refinery and petrochemical complex at Lekki Free Zone located in Nigeria. 

Engineers India share price

The share price of Engineers India was up nearly 5% to a new 52-week high in Tuesday’s intraday trade. Over the past one month, its stock has delivered a return of 19%, while over the past six months its share price has advanced by 55%. 

EIL: About the companies

Engineers India is an Indian public sector undertaking, which functions under the Ministry of Petroleum and Natural Gas. The company provides engineering, consultancy, procurement, and infrastructure services. 

Dangote Group is a Nigerian conglomerate with diversified interests spanning upstream oil & gas, mining, petrochemicals, fertilizers, cement, sugar, and food. The group is one of the region’s largest employers and operates across 17 African countries.