Dangote refinery project in Kenya set for groundbreaking ceremony

A groundbreaking ceremony for the proposed Dangote East Africa Petroleum Refinery and Petrochemicals Special Economic Zone is scheduled to take place in Mokowe, Lamu County, Kenya, on Wednesday. The project is estimated to cost about $16bn and is planned to have a processing capacity of 700,000 barrels per day. Completion is targeted for 2030.

The refinery is expected to process crude from Kenya’s Turkana oilfields as well as supplies from other parts of Africa. Its backers say the facility could reduce East Africa’s dependence on imported petroleum products. Aliko Dangote said the project formed part of an effort to move Africa from exporting raw materials towards producing finished goods.

He said the refinery could support greater self-sufficiency in fuel production on the continent. The Lamu project faces a land-rights court case and opposition from Greenpeace and others over possible environmental effects. Dangote dismissed concerns about the legal challenges and said some people opposed African development.

Kenyan President William Ruto’s chief economic adviser, David Ndii, said the project followed discussions among African policymakers, financiers and business leaders about using natural resources for industrialisation. Ndii said those discussions identified petroleum refining as a strategic opportunity for East Africa. He cited a regional market for finished petroleum products estimated at 20 million metric tonnes annually, potentially increasing to 30 million tonnes.

Dangote also said his group intended to open more of its businesses to public ownership. He said that, if the Lamu refinery were listed, it should be listed in Kenya rather than automatically in Nigeria.