Nigeria’s Dangote Group is set to officially launch plans for a new oil refinery in Lamu, Kenya, with the groundbreaking ceremony scheduled for September 30. The announcement was made by Dangote Group Chairman Aliko Dangote while addressing investors and analysts in Botswana, where he confirmed that the project will be undertaken in collaboration with governments in East Africa.
Lamu Refinery Expected to Take Three Years
Dangote said construction of the proposed refinery on Kenya’s coast could take up to three years to complete. Once operational, the facility is expected to produce refined petroleum products for the Kenyan market as well as neighbouring countries. The project is also expected to strengthen regional fuel security by reducing East Africa’s dependence on imported refined petroleum products.
Major Expansion Outside Nigeria
The Lamu refinery is projected to become Dangote Group’s largest refining investment outside Nigeria, as the conglomerate continues to expand its energy operations across the African continent. The development comes as Dangote intensifies its investments in the oil and gas sector, with refining emerging as a major area of growth for the group.
Dangote Refinery IPO Planned
Meanwhile, Dangote disclosed that the group is preparing to list shares in its Nigerian refinery through an Initial Public Offering (IPO). The IPO is expected to be launched within the next 10 to 12 days, with the company targeting approximately $5 billion in fresh capital. If successful, the offering could rank among the largest public share sales ever recorded in Africa.
Nigerian Refinery Capacity Set to Double
Dangote also announced plans to significantly increase the capacity of the company’s refinery in Nigeria. The facility currently has a nameplate capacity of 650,000 barrels per day, but the group intends to raise this to approximately 1.4 million barrels per day. The Nigerian refinery reached its full nameplate capacity of 650,000 barrels per day in February, while production has since been tested at levels of up to 700,000 barrels per day.
The expansion of refining capacity in Nigeria, alongside the planned Lamu project, underscores Dangote Group’s growing ambitions in Africa’s energy sector.
