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Dangote-backed East Africa refinery in Kenya breaks ground Sept. 30
The Lamu refinery is designed to process 700,000 barrels per day and would serve multiple East African and regional markets.
Kenya will break ground on the Dangote-backed East Africa Oil Refinery in Lamu on September 30, OilPrice reports. The project is estimated at $17 billion to $20 billion and is planned to process 700,000 barrels of crude oil per day at Lamu's deep-water port.
According to OilPrice, the refinery is intended to supply Kenya and neighboring markets including Uganda, South Sudan, Rwanda, Burundi, and the Democratic Republic of Congo. The outlet also says disclosed financing totals $1.6 billion against the larger stated price range.
OilPrice adds that Tanzanian billionaire Mohammed Dewji has committed $100 million to the project. The deal structure includes Dangote Group offering East African nations a combined 30% equity stake valued at $1.5 billion, with Kenya's individual 10% allocation put at about $500 million by Kenya's economic adviser David Ndii.
The Lamu project is linked to two separate pipelines, not one, with costs, capacity, and completion dates not disclosed, OilPrice reports. The outlet also notes the president, William Ruto, told Dangote they are discussing a line from Turkana's oil fields to Lamu to provide an inbound crude route for the refinery.
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