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Aliko Dangote proposes $17 billion refinery to boost East Africa fuels
The planned 700,000 bpd refinery on Kenya’s Lamu Island would process crude for multiple countries and is estimated to create more than 60,000 jobs.
East Africa exports crude oil but imports all of its refined fuels, after Kenya Petroleum Refineries Limited, the region’s last operating refinery, shut down in 2013, according to OilPrice.
African Energy Commission data cited by OilPrice shows the region holds about 4.7 billion barrels of crude oil reserves and more than 70 trillion cubic feet of natural gas across Uganda, South Sudan, Kenya and the DRC.
OilPrice reports that Nigerian billionaire Aliko Dangote is now seeking to reverse the imbalance with a $17 billion project, a 700,000 barrel per day refinery on Kenya’s Lamu Island intended to process crude for Kenya, Uganda, South Sudan, Rwanda, Burundi and the DRC.
The refinery’s planned capacity would exceed East Africa’s current refined fuel demand of roughly 450,000 bpd by about 250,000 bpd, leaving room to supply other markets, while Lamu’s harbor is described as capable of accommodating large crude tankers and the project is projected to create more than 60,000 jobs.
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