Dangote Plans 700,000-Bpd Refinery In Kenya’s Lamu For East African Market

Nigeria’s Dangote Industries Ltd plans to build a 700,000-barrel-per-day (bpd) oil refinery in Lamu, Kenya, as part of its expansion into East Africa, the company’s Group Vice President for Oil and Gas, Devakumar Edwin, said.

The proposed refinery would supply refined petroleum products to Kenya and neighbouring East African countries, supporting regional efforts to reduce reliance on imported fuels.

Edwin disclosed the planned capacity during a visit by a delegation from the Republic of the Congo’s national oil company to the Dangote Petroleum Refinery in Lagos on July 1.

He said Dangote’s refining capacity in Nigeria would reach 1.4 million bpd, while the planned Kenyan refinery would add a further 700,000 bpd, bringing the group’s combined refining capacity to 2.1 million bpd.

Dangote Group President Aliko Dangote had previously said the company planned to build a refinery in East Africa.

The project was initially proposed for Tanzania’s Port of Tanga before the company shifted its focus to Kenya.

Lamu and Mombasa are under consideration as potential sites, with the company evaluating the most suitable location for the multibillion-dollar project.

Dangote said the shift reflected maritime considerations, existing infrastructure and market demand.

Kenyan President William Ruto said regional governments would participate in financing the project, with Kenya allocating 21.5 billion Kenyan shillings ($…) in seed capital.

The refinery is expected to cost about 2.5 trillion Kenyan shillings and supply refined fuels to Kenya, Tanzania, Uganda, South Sudan and other East African markets.

If completed, the project is expected to reduce East Africa’s dependence on imported refined petroleum products and improve regional fuel supply security.