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Dangote awards PMC to Tata for Africa largest fertilizer plant

Saipem won EPC contract for Nigeria Edo fertilizer

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolBased in Lagos, Nigeria, the Dangote Group (Dangote) has selected the Indian Tata Consulting Engineering company as project manager consultant (PMC) for its Edo Fertilizer project in Nigeria.

Estimated to require $1.9 billion capital expenditure, this Edo Fertilizer project is given as to build the largest Fertilizer plant in Africa.

Aliko Dangote, the President of Dangote, is known as the richest billionaire in Africa after developing its business in food , construction and logistic in Nigeria and then expanding in Africa.

Dangote, as a company was established in 1981 in Lagos to trade cement and basic food in Nigeria.

Nigeria_Edo_Dangote_Fertilizer_ProjectIn 1999 Dangote started to substitute import and trading activities by local manufacturing in the model of emerging countries in beginning with cement plants.

Today, Dangote is the largest manufacturing company in Africa with operations in 14 countries.

Across all its activities, Dangote consolidates $3 billion revenues per year and counts more than 25,000 employees.

Dangote Cement is the largest company listed in Nigeria representing 30% of the Nigerian Stock Exchange.

Dangote sugar refinery is ranked second world largest.

In the oil and gas and petrochemical sector, Dangote is until now mostly active on upstream side as reference local investor with interests in different blocks offshore Nigeria together with Anadarko, Chevron, ExxonMobil, Petrobras or Statoil.

From its upstream activities and in context of depressing gas prices, Dangote realized the opportunity to monetize a part of the local natural gas production with a fertilizer facility.

Actually Nigeria is importing all its needs for fertilizer with major consequences on the country balance sheet.

Therefore Dangote decided to build a world scale fertilizer plant that should cover all the domestic consumption for ammonia and urea in Nigeria.

Tata to provide project management consultancy

In that perspective this Dangote fertilizer project should have a capacity of:

 – 2,200 t/d of ammonia

 – 7,700 t/d of urea with two trains of 3,850 t/d each

In addition to make Nigeria self-sufficient in fertilizer, Dangote is planning with a local facility to produce varieties of fertilizer to match exactly with the nature of the soils and the types of agriculture of the local farmers.

This local production should contribute to improve the overall performances of the agriculture which contributes for 46% to the Nigeria GDP.

Nigeria_Edo_Dangote_Saipem_Fertilizer_ProjectThis Dangote fertilizer project should be located in the Edo State.

At the end of 2011, Dangote selected the Italian engineering company Saipem to perform the front end engineering and design (FEED).

Currently Saipem is working on the engineering, procurement and construction (EPC) of the $1.9 billion fertilizer plant.

Targeting the Edo fertilizer plant to be built and operated in respect with the highest world-class standards, Dangote decided to get the support of a third party as project manager.

In that role, Dangote selected the Indian Tata Consulting Engineering Ltd company (Tata) to provide project management consultancy (PMC).

According to the terms of the contract and in respect with its global experience in designing, building and operating large fertilizer plants, Tata will support Dangote in supervising the engineering, construction management, and in providing assistance for quality management, health and safety management.

Overall, Dangote expects Tata to help Saipem to complete the Edo Fertilizer project on time for first production in 2014 and in conformity with the highest global standards.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer

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3 Comments to “Dangote awards PMC to Tata for Africa largest fertilizer plant”

  1. Should’nt the capacity of Ammonia and Urea be Tons per day? instead of T/Y ?

    • You’re correct. %any thanks for the remark. We’ll update the document.

  2. please can i be employ to TATA as a proffessional Q.S with dantata presently at LFTZ

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