Dangote's Kenya Refinery Project Launches This Week at Up to $20B
Kenya breaks ground September 30 on the Dangote-backed East Africa Oil Refinery in Lamu, a project priced at $17 billion by Kenyan officials and $20 billion by Aliko Dangote himself, and designed to process 700,000 barrels of crude oil a day at Lamu's deep-water port. It would serve Kenya, Uganda, South Sudan, Rwanda, Burundi and the Democratic Republic of Congo. Disclosed financing for the…
Kenyans herald the launch of a monumental $20 billion refinery project on September 30 in Lamu, a deep-water port serviced by two undisclosed pipelines. Dangote-backed East Africa Oil Refinery, processing 700,000 barrels of crude oil daily, aims to benefit Kenya, Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of Congo.
Tanzanian billionaire Mohammed Dewji has pledged $100 million to the project. Dangote Group offers East African nations a 30% equity stake, valued at $1.5 billion, with Kenya's individual 10% allocation estimated at $500 million. Two additional pipelines, their details undisclosed, are also linked to the Kenya project. President Ruto expresses interest in constructing a route from Turkana's oil fields to Lamu for refined crude supply.
Dangote is concurrently constructing two more unrelated pipelines. The combined pipeline program across the continent is estimated at $46 billion to $50 billion, covering roughly 4,000 kilometers. Kenya's refinery faces competition from Tanzania-Uganda's $20 billion energy hub in Tanga and Uganda's 60,000-barrel-per-day refinery in Hoima.
Dangote anticipates project completion by 2029-2030, with construction commencing in October from a $1.6 billion financing package.
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