Aliko Dangote has flagged off work on a $16bn oil refinery project in Kenya, extending his group’s refining plans beyond Nigeria.
Daily Trust reported that Dangote, Kenyan President William Ruto, former Nigerian President Olusegun Obasanjo and other African leaders attended the groundbreaking ceremony at Lamu Port in northern Kenya on Wednesday.
The refinery is planned as a 700,000-barrel-per-day facility. Daily Trust reported that the project is scheduled for completion in 2030, while Premium Times reported that it is expected to cost between $15bn and $16bn and take about three years to construct.
The project is expected to supply refined petroleum products to Kenya and other East African markets, including South Sudan, Uganda, Burundi and the Democratic Republic of the Congo. Daily Trust also reported that a $450m engineering contract had been awarded to Engineers India Limited.
Premium Times reported that the project is facing protests and legal challenges over land acquisition, compensation and environmental concerns. It said the Malindi Environment and Land Court ordered a temporary halt to construction activities pending a hearing.
The proposed refinery also includes a 1,000-megawatt power plant for its operations and related industrial activity. The land and compensation disputes remain unresolved.
Sources: Daily Trust, Premium Times
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