Mombasa Oil Refinery Project Announced by Africas Richest Man

Aliko Dangote Plans East Africa Refinery Project

Billionaire businessman Aliko Dangote has announced plans to build a new refinery project in East Africa, following the success of his recently launched oil refinery in Nigeria’s Lagos State. The new project is expected to have a similar capacity to Dangote’s existing operation in Lagos.

Dangote’s refinery in Lagos began operating in 2024 and has been supplying large volumes of crude oil to West, South, and East Africa. The refinery’s capacity to produce 650,000 barrels per day has helped cushion the impact of global disruptions on fuel supply, particularly during the war between the US and Israel and Iran.

East African countries are seeking ways to increase energy security following the closure of the Strait of Hormuz, which accounts for about 20 percent of the world’s oil and natural gas shipments. Nigeria is currently the largest oil producer in Africa, and Dangote’s refinery has become a key supplier of refined petroleum products to neighboring countries.

Kenya’s President William Ruto recently announced plans to build a joint oil refinery at Tanzania’s Tanga port, which would have a similar capacity to Dangote’s Lagos operation. However, Dangote has expressed preference for building the new project in Kenya, citing Mombasa’s larger and deeper port as a key factor.

The construction costs of the new project are estimated to be between $15 billion and $17 billion. Analysts note that venturing into East Africa will pose challenges due to its different commercial landscape from West Africa. Despite this, Dangote has proven his ability to build at scale with his existing operation in Lagos.

African countries currently rely heavily on imports for refined petroleum products, with only 44 percent of the total oil consumed being refined locally. The top producers of refined oil are Algeria, Egypt, and South Africa, with about 21 refineries operating in North Africa.

Source: Al Jazeera