The Ugandan President, Yoweri Museveni, has viewed the country’s plans to invest in the Dangote Group’s proposed $17 billion regional oil refinery as a welcome development aimed at strengthening industrial growth and improving energy security and prosperity across East Africa.
Museveni made the frank remarks during a meeting with visiting Nigerian businessman Aliko Dangote, who presented the refinery proposal to him in the country’s state house, noting that the refinery would support wider efforts to promote regional integration, increase local value addition, and drive industrial development across the continent.
According to the statement, the proposed refinery, which will be situated in Kenya, is expected to cost between $15 billion and $17 billion, with a planned processing capacity of 650,000 barrels of crude oil per day. The facility is intended to serve Uganda, Kenya, Tanzania, Ethiopia, South Sudan, the Democratic Republic of the Congo, and other regional markets.
Dangote’s preference to locate the refinery in Kenya is not far from the ongoing East African Crude Oil Pipeline (EACOP), which will transport crude oil from Uganda, a landlocked country, to export terminals in Kenya. He stated that discussions with governments in the region are ongoing, and he affirmed that Tanga, Mombasa, and Lamu are among the locations under consideration for the refinery.
“This continues the discussions we started with regional leaders in Nairobi, Kenya. We want to build a refinery that can meet East Africa’s rising energy demand,” Dangote said.
Amongst the East African region, the Democratic Republic of Congo is only country currently producing oil, while South Sudan and Uganda are expected to produce their first oil. Refinery plans come as Uganda moves closer to its first oil production, with development activities at the Kingfisher and Tilenga Oil Fields approaching completion.
