Dangote refinery: Why Lamu beat Tanzania’s Tanga in East Africa’s energy race
The Dangote refinery project has shifted from a proposed regional facility in Tanzania to a Ksh2 trillion investment in Kenya, creating a sharp contrast between Tanga and Lamu. The project, initially associated with Tanzania’s Tanga port, is now being developed at Lamu, where Dangote Group broke ground on September 30 for a refinery designed to […]
The Dangote refinery project, originally envisioned as a regional facility in Tanzania, has now been shifted to Kenya, marking a significant shift in East Africa's energy landscape. The Kenyan government, led by Dangote Group, broke ground on September 30 for a refinery capable of processing 700,000 barrels of crude oil daily. This move comes as East African nations increasingly rely on imported refined petroleum products.
The refinery's potential to alter regional supply routes and create a petrochemical hub in Kenya contrasts sharply with Tanga's role as a strategic location for Uganda's crude through the East African Crude Oil Pipeline (EACOP).
Initially, Tanga's connection to Uganda's crude through the EACOP pipeline made it an attractive option. However, Dangote's team later concluded that Lamu's deep-water port, suitable land, and suitable sea depth were more appropriate for such a large-scale project. Dangote's decision underscores that a refinery's location can be determined by factors beyond the crude's origin, including port infrastructure, land availability, and access to large vessels.
While Tanga retains strategic importance as a transit point for Uganda's crude, Kenya now boasts a major refinery project at Lamu, poised to strengthen its position as a hub for petroleum processing and logistics. This shift highlights the broader competition over the infrastructure that will shape East Africa's petroleum trade.
Written by urgent.news from People Daily Kenya's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
