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Dangote faces Kenya refinery hurdles
The $15 billion to $16 billion project would use East African crude and financing from bonds, loans and development finance institutions, a company executive said.
Dangote Group plans to build a refinery in Lamu, Kenya, aiming to complete it by 2030, but sourcing crude oil there is uncertain since Kenya imports most of its oil from the Middle East.
The $16 billion Kenyan refinery project faces fundraising challenges, especially as Dangote also plans to double the capacity of its Nigerian refinery.
Dangote Industries proposes a 1,000-megawatt liquefied natural gas power plant in Kenya to support the refinery and reduce dependence on intermittent power sources.
The success of the project depends on securing a steady gas supply from Tanzania, finalizing power agreements, and ongoing discussions with the Kenyan government before a final investment decision.