A 700,000-barrel-per-day oil refinery backed by Nigerian billionaire Aliko Dangote will be built in Kenya, with the East African nation’s coastal county of Lamu selected as the site for the multi-billion-dollar project, a senior company executive said.
The refinery, which would be the largest in East Africa, is expected to take up to three years to complete and will supply refined petroleum products to Kenya and neighbouring countries, reducing the region’s dependence on imported fuels.
Edwin Devakumar, Vice President for Oil and Gas at Dangote Industries, said the project will be financed through a mix of internal cash flow, bond issuances and an initial public offering (IPO). While the company has not disclosed the total investment, the cost is expected to be comparable to the group’s flagship refinery in Lagos, Nigeria, which exceeded $20 billion.
Kenya was chosen over other potential locations in East Africa due to its strategic infrastructure, including the deep-water port in Lamu, which is expected to support crude imports and exports of refined products across the region.
The project forms part of Dangote’s broader expansion strategy to increase refining capacity across Africa and strengthen the continent’s energy security amid growing demand for locally refined petroleum products.
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