Big Support As Dangote Moves To Build Another 650,000bpd Refinery, Location Confirmed
- Aliko Dangote is making a move to build a $17 billion, 650,000 barrels-per-day refinery in Mombasa, Kenya
- Dangote says the project depends on support from President William Ruto, including land allocation
- President Tinubu's Africa-France Summit discussions in Nairobi will further boost the project plan
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Nigerian billionaire Aliko Dangote plans to site a massive $17 billion oil refinery in Kenya, and has received a major boost.
In an interview with the Financial Times, Dangote said that he is leaning towards Mombasa as the preferred location for the proposed 650,000 barrels-per-day refinery.
Source: Getty Images
The industrialist said the new location has a deeper and larger port compared to Tanzania’s Tanga, which was previously under consideration.
He said:
“I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port.”
The new refinery is estimated to cost between $15 billion and $17 billion.
Why Dangote chose Kenya
The billionaire industrialist noted that Kenya’s larger fuel market also influenced the decision to build the refinery in the country instead of Tanzania
He said:
“Kenyans consume more. It’s a bigger economy,."
He added that crude oil for the refinery could be transported by ship and need not be located near a pipeline that will carry oil nearly 1,500 kilometres from Ugandan oilfields to the Tanzanian coast at Tanga.
“The ball is in the hands of President Ruto. Whatever President Ruto says is what I’ll do."
For the project to proceed, Dangote said he would require land allocation, financing support from East African partners, and regulatory protection against fuel dumping from global suppliers such as Russia and India.
He added:
“There is no refinery in the world that can survive without that protection."
Source: Twitter
President's visit to Kenya is a big boost for Dangote
Meanwhile, President Bola Tinubu is in Nairobi for the Africa-France Summit, co-chaired by French President Emmanuel Macron and President Ruto.
The summit scheduled to take place on 11 and 12 May will focus on energy transition, green industrialisation, digital transformation, and reforms to global financial systems.
Beyond official discussions, Tinubu is expected to support private sector-led expansion initiatives, including Dangote’s proposed Kenyan refinery, which aligns with broader efforts to deepen Africa’s industrial base, BusinessDay reports.
The summit, themed “Africa Forward: Africa-France Partnerships for Innovation and Growth,” also provides a platform for leaders to discuss infrastructure development, youth empowerment, and cross-border investment.
Dangote refinery clarifies reports on initial public offering
Legit.ng earlier reported that Dangote Petroleum Refinery and Petrochemicals (DPRP) has dismissed recent media reports and online speculation suggesting that the company is planning an Initial Public Offering (IPO).
In a statement released on Thursday, March 26, the company described the circulating information as unauthorised and unverified.
Dangote stated that it had taken note of “recent circulation of unauthorised information across various media and social platforms.
Source: Legit.ng
