Dangote’s proposed Kenyan oil refinery faces hurdles, not least with crude supply
Less than three years after overcoming surging costs, swampy terrain and inadequate infrastructure to launch Africa's biggest oil refinery in Nigeria, billionaire Aliko Dangote is set on replicating that project on the continent's opposite coast.
Aliko Dangote, the Nigerian billionaire, is planning to build Africa's largest oil refinery in Kenya's Lamu port. However, the project faces several challenges, including securing a reliable source of crude oil. Kenyan President William Ruto has stated that the refinery could potentially obtain 600,000 barrels of crude oil per day from East African nations such as South Sudan, Uganda, and Kenya itself.
Yet, these sources are not straightforward, with Kenya struggling to produce oil and pipelines from South Sudan and Uganda to Kenya remaining distant prospects. Furthermore, the refinery will be located within the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) special economic zone, which currently lacks operational oil storage terminals.
This dependence on international seaborne crude imports, especially with the ongoing war in Iran disrupting Middle Eastern exports, adds to the project's risks. Greenpeace Africa has also raised concerns about habitat destruction and marine degradation in the World Heritage site of Lamu Old Town. Nonetheless, Kenya's President Ruto remains optimistic about the refinery's potential to end costly fuel imports and spur economic growth.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
