Dangote Group President Aliko Dangote has set a 40-month timeline for completion of the proposed Sh2.2 trillion Lamu refinery, saying the 700,000-barrel-per-day facility will help East Africa cut its reliance on imported petroleum products.
Speaking during the groundbreaking ceremony in Mokowe, Lamu County, on Wednesday, Dangote said the project would also support power generation, manufacturing and other businesses while creating thousands of opportunities along its supply chain.
“Mr President, and our other respected presidents, my brother, Prime Minister Abiy, I want to assure you we will come back here and commission this refinery in 40 months from today,” Dangote said.
The refinery is expected to generate 1,000 megawatts of electricity and produce one million tonnes of polypropylene, with the wider project covering areas such as energy, petrochemicals, logistics, engineering, manufacturing and marine services.
Dangote said the investment was not limited to the construction of processing units, storage tanks, pipelines and jetties, but would also create a wider industrial base around the refinery.
“We are not here merely to build tanks, pipelines, processing units, and jetties. We are here to help build an industrial ecosystem,” he said.
Dangote said the planned ecosystem would create opportunities in several areas, including logistics, engineering, technology, manufacturing and small and medium-sized enterprises.
“We are not here merely to build tanks, pipelines, processing units, and jetties. We are here to help build an industrial ecosystem,” he said.
He also announced plans to establish a training school in Lamu that will prepare 1,000 local people for opportunities linked to the project.
“To the governor of Lamu, before we start even our pile, which will be in the next couple of days, I want to assure you, we are coming here to set up a training school that will train 1000 of your people,” he said.
Dangote said the refinery would also help develop technical skills locally, with opportunities expected for people with engineering degrees, diplomas and other qualifications.
“What this will do is that going forward in the future, we don't have to go and bring Chinese, Indians, or so to come and build our infrastructure. We are going to build capacity here,” he said.
He said the project would serve East African markets while helping the region retain more value from its natural resources instead of relying heavily on imported refined fuel.
“Africa cannot build lasting prosperity by exporting what it has and importing what it needs,” Dangote said. “We must produce more of what we consume. We must process more of what we produce.”
The $16 billion refinery is designed to process 700,000 barrels of crude oil daily, placing it among the largest refining projects in Africa. Construction is expected to run towards 2030, while regional governments are set to hold a combined 30 per cent stake in the project.
Heavy construction equipment has already been moved to Lamu Port, with 2,930 tonnes of machinery delivered ahead of the groundbreaking ceremony.
The facility is planned to supply Kenya and other East African markets and is expected to support businesses linked to the energy and manufacturing sectors.
The project, however, has faced a legal challenge from Lamu residents over land rights. A court has ordered the parties to maintain the status quo on the disputed land pending a hearing scheduled for October 14.