Kenya has edged out Tanzania has the most preferred location for the development of Dangote Group's 700,000 barrels per day oil refinery in East Africa.

In an update issued by the Group's Oil and Gas Vice President Devakumar Edwin, the Kenya-based facility which is likely to be set up in either the Port of Mombasa or Lamu, will push up Dangote's daily oil refinery capacity to 2.1 million barrels.

Currently, the oil giant's Nigeria plant refines 1.4 million barrels daily and has been instrumental in stabilising fuel supply in the western African country in the wake of Middle East conflict that has left energy markets in East Africa in turmoil.

Earlier, the Port of Tanga in Tanzania appeared to be in pole position in hosting Dangote's oil refinery in East Africa. According to President William Ruto, Kenya has set aside KES21.5 billion in seed capital towards the development of the strategic energy project.

Dangote Industries Limited (DIL) plans to develop a 700,000-barrel-per-day oil refinery in Kenya as part of its wider expansion across Africa’s energy sector.

Serve regional markets

The proposed facility, which is valued at approximately KES2.5 trillion, is poised to serve Kenya, Tanzania, Uganda, South Sudan and other markets in the region.

It is projected to cut East Africa's decades old dependence on imported refined fuels from the Middle East while offering cushion against global energy market disruptions.

Once completed, Dangote's refinery could significantly reshape regional energy industry. Currently, Kenya's Port of Mombasa serves as a major logistics avenue serving regional countries.

With a 700,000bpd coastal refinery, this move will cement the country's role in regional energy security while further eliminating dependence on imports.

Additionally, the oil refinery would act as market centre for crude supplies from oil-producing countries such as Uganda, South Sudan and Kenya which projects to start crude shipments in December.

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