Dangote breaks ground on $16 billion East African oil refinery
The refinery will also aim to export jet fuel to the European and British markets, Dangote said.
Construction commenced on Wednesday for a $16 billion oil refinery in Kenya, aimed at reducing fuel costs and saving the region from importing refined products. Aliko Dangote, Africa's wealthiest individual, and Kenyan President William Ruto inaugurated the project at the port of Lamu, where Dangote plans to replicate his Nigerian refinery's 700,000-barrel-per-day capacity.
Dangote has offered a 30% stake in the Kenyan refinery to regional governments, with the plant scheduled for completion in 2030. Engineers India Limited and Honeywell Technologies will provide an engineering contract worth $450 million and technological support, respectively. The refinery, set to be listed on the Nairobi stock exchange, represents the largest foreign direct investment for Kenya and could boost the country's GDP by 12%.
Ruto emphasized the project's significance in energy security, industrialization, and regional integration, stating that it will achieve energy self-sufficiency in a region stretching from Ethiopia to Mozambique. The ceremony was attended by Ethiopia's Prime Minister Abiy Ahmed, Uganda's President Yoweri Museveni, Benin's President Romuald Wadagni, and Togo's President Jean-Lucien Savi de Tové.
Local residents expressed optimism about the refinery's potential to transform their lives from menial jobs to skilled positions. Lamu Port, where the refinery is situated, is crucial to Kenya's transport corridor initiative, connecting its northern region and neighboring countries to the sea. The refinery is expected to meet East Africa's annual demand for petroleum products, estimated at 20 to 30 million metric tons.
While oil industry analysts acknowledge the challenges of replicating Nigeria's model, the project is anticipated to stimulate industries like petrochemicals, base oil, and bitumen production and create over 50,000 jobs. The refinery will be powered by a 1,000-megawatt power plant, which will sell excess energy to other customers.
Environmental concerns persist, as the project faces opposition from campaigners worried about its impact on the World Heritage site of Lamu Old Town. Dangote defended the opposition, asserting that his company is prepared to challenge any legal threats.
Written by urgent.news from SABC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
