Nigerian billionaire Aliko Dangote and Kenyan President William Ruto are set to launch construction of a $16 billion oil refinery in Lamu, Kenya, as Dangote expands his refining business beyond Nigeria.
The 700,000-barrel-per-day refinery is expected to be one of Africa’s largest and is targeted for completion by 2030. The project is designed to reduce East Africa’s reliance on imported refined petroleum products and support the region’s growing energy demand.
The facility will also include a 1,000-megawatt power plant, with about 500MW expected to be supplied to Kenya’s national grid. Dangote said the refinery would source crude from several countries, including producers in Africa, the Middle East and the United States.
Dangote said the project would contribute to Africa’s drive for greater energy self-sufficiency by increasing the amount of crude processed within the continent rather than exporting crude and importing refined products.
The Lamu project, however, faces opposition from some local residents and environmental groups.
More than 100 residents have filed a case challenging the use of land earmarked for the refinery, claiming ancestral and other interests in the property and seeking recognition and compensation. A Kenyan court has ordered the status quo to be maintained on part of the disputed land pending further proceedings, although it did not stop the September 30 groundbreaking ceremony.
Environmental groups, including Greenpeace Africa, have also raised concerns about the project’s potential environmental impact and the consultation and assessment process.
Dangote said the legal challenges would not derail the project, describing the refinery as an important investment in Africa’s industrial and energy future.
The refinery is expected to support related industries, including petrochemicals, while creating tens of thousands of jobs.
