HomeEconomyEnergyINSIDE DANGOTE'S $46 BILLION PLAN TO CONNECT WEST AND EAST AFRICA WITH...

INSIDE DANGOTE’S $46 BILLION PLAN TO CONNECT WEST AND EAST AFRICA WITH TWO MEGA-REFINERIES

Dangote Industries has unveiled plans to build a 700,000-barrel-per-day refinery in Kenya, marking a major step in its strategy to establish a continent-wide refining network as part of a $46 billion investment programme covering its refining, cement, and fertiliser businesses between 2026 and 2028.

The proposed Kenyan refinery will complement the company’s existing refining operations in Nigeria, giving Dangote Industries a combined refining capacity of 2.1 million barrels per day. The expansion is expected to create one of Africa’s largest privately owned refining networks, connecting West Africa and East Africa through two major refining hubs.

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The announcement was made by the company’s Group Vice President for Oil and Gas, Devakumar Edwin, during a visit by officials from the Republic of the Congo’s national oil company, Société Nationale des Pétroles du Congo (SNPC), to the Dangote Petroleum Refinery in Lagos.

During the meeting, the company outlined its long-term vision for expanding energy infrastructure across Africa and strengthening regional cooperation in the petroleum sector.

The planned refinery represents an increase from the company’s earlier proposal for a 650,000-barrel-per-day facility, reflecting growing confidence in Kenya’s strategic role as an energy hub for East Africa.

Kenya was selected after the company assessed several potential locations across the region. The country’s strategic advantages include the Port of Mombasa, one of East Africa’s busiest seaports, which serves as a major distribution gateway for petroleum products destined for neighbouring countries such as Uganda, Rwanda, South Sudan, eastern Democratic Republic of Congo, and parts of Tanzania.

The presence of an extensive pipeline network and Kenya’s membership in the East African Community (EAC), which serves a market of more than 300 million people, also influenced the decision. The project is expected to revive Kenya’s refining ambitions after the closure of its only refinery more than a decade ago.

When completed, the Nigerian and Kenyan refineries are expected to improve the supply of refined petroleum products across sub-Saharan Africa, reducing the continent’s dependence on fuel imports from Europe, the Middle East, and Asia.

The expansion also aligns with the goals of the African Continental Free Trade Area (AfCFTA) by promoting industrial development, strengthening regional trade, and encouraging more value-added processing of Africa’s crude oil within the continent.

Dangote Industries said its long-term vision extends beyond Nigeria, emphasizing its commitment to supporting Africa’s energy security and industrial growth through strategic investments across the continent

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