Dangote Confirms Final Kenyan Location for Ksh2.59 Trillion Refinery, Announces Timelines

Jukwaa

🇰🇪 Breaking It Down

Dangote Industries on Tuesday confirmed that the 700,000-barrel-per-day refinery will be constructed on the island of Lamu, with company executives saying the Kenyan coast was selected after considering commercial, technical and logistical factors.

The refinery, once completed, will become East Africa's largest petroleum processing facility and is expected to significantly reduce the region's dependence on imported refined fuel products.

Edwin Devakumar, Dangote Industries' Vice President for Oil and Gas, said the project site has already been identified, with soil testing underway and engineering and design works having commenced, according to AFP .

📌 What You Need to Know

"Kenya was the choice from the beginning," Devakumar said while confirming that the refinery would be built in Lamu.

The project is expected to cost Ksh2.59 trillion (USD20 billion), making it one of the largest private investments ever proposed in Kenya.

According to the company, construction is expected to take between 30 months and three years before the refinery begins processing crude oil for the Kenyan market and neighbouring countries.

Dangote Industries also revealed that the project will be financed through a combination of internally generated cash , bond issuances and proceeds from a planned initial public offering (IPO), reducing reliance on external borrowing.

The confirmation comes weeks after Dangote met Tanzanian President Samia Suluhu Hassan, where he explained why the company had opted against locating the refinery in Tanzania despite initially considering the country's port city of Tanga.

During the discussions, Dangote invited Tanzania to participate in the Lamu project, signalling that while Kenya will host the refinery, the investment is intended to serve the wider East African market.

📰 Source: Kenyans.co.ke

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