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Nigerian billionaire Aliko Dangote is reportedly weighing plans to construct a 650,000 barrels-per-day oil refinery in Mombasa instead of Tanzania’s Tanga port, according to Reuters citing the Financial Times.
The proposed refinery, estimated to cost between $15 billion and $17 billion, would become one of Africa’s biggest privately funded energy projects.
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Reuters reports that Dangote is favouring Mombasa due to its deeper harbour, well-developed petroleum infrastructure and access to a larger regional fuel market.
“I’m leaning more towards Mombasa because Mombasa has a much larger, deeper port,” Dangote said, according to Reuters.
A final decision is expected after further consultations with President William Ruto.
The refinery discussions gained momentum during last month’s Africa We Build Summit in Nairobi, where East African leaders explored the possibility of establishing a regional refinery to cut dependence on imported fuel.
The initial proposal centred on Tanzania’s Tanga port, with crude oil expected from Kenya, Uganda, South Sudan and the Democratic Republic of Congo.
However, recent developments indicate that Kenya and Tanzania are now competing to host the multi-billion-dollar project as both nations seek to strengthen their roles as regional energy and logistics centres.
A Mombasa-based refinery would complement Kenya’s existing petroleum supply network, which already serves Uganda, Rwanda and South Sudan through the Port of Mombasa.
If approved, the project could greatly reduce East Africa’s reliance on refined fuel imports from the Middle East and Asia.
