Engineers India shares: EIL jumps 6% on Kenya greenfield refinery plant

Engineers India Ltd (EIL) shares climbed 6 per cent in Tuesday's trade after the company said it will execute Dangote Group's mega greenfield refinery & petrochemical plant in Kenya. The stock rose 5.94 per cent to hit  high of Rs 302.05 apiece, taking its one-year return to 44.39 per cent.

The Dangote group is aggressively expanding its continental footprint into East Africa. To meet regional demand and process a wider crude basket, it is setting up a state-of-the-art 700,000 BPD Greenfield Refinery and Petrochemical Plant in Kenya, EIL told stock exchanges.

"Believing in EIL's Engineering and Project Management excellence, the Dangote Group has once again joined hands with EIL in this endeavor and signed a Contract Agreement of value in excess of $ 450 Million to engage EIL as PMC and EPCM Consultant for this prestigious Project," EIL said in an exchange filing.

Once completed, the 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.

"This Contract is a strong affirmation of the trust reposed in EIL's capabilities to deliver projects of exceptional scale and complexity. As we move into this next phase, EIL will bring its decades of experience, multidisciplinary strengths, and global execution model to support Dangote in creating one of the world's most advanced and fully integrated energy complexes," EIL said.

Engineers India had earlier partnered with the Dangote Group as the Project Management consultant (PMC) and EPCM consultant for the successfully commissioned 650,000 BPD Dangote Refinery and Petrochemical Complex at Lekki Free Zone, and further working on its expansion to 1.4 Million barrels per day project.