Dangote Settles on Lamu, Kenya for Proposed 700,000 bpd East African Mega-Refinery
- Planned single‑train crude capacity: 700,000 barrels per day (≈34.8 Mtpa).
- Targeted annual outputs include ~15.5 Mtpa gasoline, ~11.8 Mtpa diesel, ~3.2 Mtpa jet, ~1.1 Mtpa LPG and ~1.5 Mtpa polypropylene.
- Facility will connect to an 800 km Lokichar–Lamu pipeline carrying waxy crude from the South Lokichar Basin; commercial upstream production is scheduled to begin in late 2026.
- Project cost USD 17–20 billion; funding to come from internal cash flow, bond issuances and a refinery IPO, with Kenya providing KES 21.5 billion (USD 165 million) seed equity.
Executive Summary
Following months of intense bilateral negotiations and regional speculation, Dangote Industries Limited has officially finalized Lamu Island, Kenya as the site for its planned USD 17 billion to USD 20 billion East African mega-refinery.
Confirming the decision, Devakumar Edwin, Dangote’s Group Vice President for Oil and Gas, stated that the Kenyan coast was selected over Tanga, Tanzania, after comprehensive technical, commercial, and maritime feasibility evaluations. Ground preliminary works—including site surveying, soil testing, and front-end engineering scoping—have officially commenced.
Refinery Downstream Profile & Annual Capacities
The proposed Lamu facility will replicate the single-train configuration of Dangote's flagship Lekki complex in Nigeria.
Crude Processing Capacity: 700,000 barrels per day (bpd) (approximately 34.8 Million Tonnes Per Annum (Mtpa) of crude oil).
Upstream Pipeline Connection: The Lamu Refinery will be technically integrated with and connected to the upcoming 800-kilometer Lokichar-to-Lamu Crude Oil Pipeline. This infrastructure is designed to transport waxy crude downstream from the South Lokichar Basin in Turkana County (where commercial production is scheduled to begin in late 2026).
Refined Product Slate (Targeted Annual Capacities)
Premium Motor Spirit (Gasoline): ~15.5 Mtpa
Automotive Gas Oil (Diesel): ~11.8 Mtpa
Aviation Turbine Fuel (Jet A-1): ~3.2 Mtpa
Liquefied Petroleum Gas (LPG): ~1.1 Mtpa
Polypropylene (Petrochemical Grade): ~1.5 Mtpa
Engineering & FEED Execution Status
While Devakumar Edwin confirmed that design and engineering scoping is officially underway, the contract for the Front-End Engineering Design (FEED) has not yet been formally awarded to a single contractor.
Industry analysts point to India’s state-owned Engineers India Limited (EIL) as the leading candidate. EIL recently signed a landmark USD 350 Million project management and EPCM contract with Dangote Group in January 2026 to oversee the expansion of the Lagos refinery to 1.4 million bpd, alongside urea upgrades across East Africa, positioning them as the logical technical lead for the Lamu development.
Capital Structure & Non-Debt Financing
The projected USD 17–20 billion development will bypass heavy reliance on traditional international debt markets. Devakumar Edwin outlined a three-pronged, equity-forward funding strategy:
Internal Cash Flow: Funded directly from the group’s pan-African operational cash generation, bolstered by the fully operational Lekki refinery in Nigeria.
Debt Capital Markets: Strategic corporate bond issuances targeting regional and international institutional investors.
Public Equities: Capital injection derived from the highly anticipated Initial Public Offering (IPO) of the Dangote Petroleum Refinery.
The government of Kenya has already signaled strong state backing, allocating an initial KES 21.5 Billion (USD 165 Million) in seed capital to secure a public equity stake in the regional asset.
