LAMU, Kenya — The first consignment of heavy construction equipment for the proposed Sh2 trillion Dangote East Africa Refinery has arrived at the Port of Lamu ahead of a groundbreaking ceremony planned for next week.
The Kenya Ports Authority said MV Da Yang docked at the port carrying 2,930 metric tonnes of machinery intended for the refinery project.
The shipment represents one of the first visible steps towards construction of the 700,000-barrel-a-day refinery, which is expected to be developed within the Lamu Port South Sudan Ethiopia Transport Corridor Special Economic Zone.
KPA Chief Executive Officer Captain William Ruto welcomed the vessel and presented its master, Captain Wang Shengli, with a certificate marking its first call at the port.
“The arrival of this vessel is very critical and shows the Government’s commitment to ensuring this project succeeds,” Captain Ruto said.
“It will be a game changer for the entire region.”
Groundbreaking planned next week
The arrival of the machinery comes ahead of the anticipated groundbreaking for what would become the first oil refinery in northern Kenya.
The refinery is expected to process crude oil from the Lokichar fields in Turkana and supplies sourced from other parts of East and Southern Africa. Imported crude could also be transported to the facility by sea.
Once operational, the project is intended to supply petrol, diesel, jet fuel and other refined products to Kenya and regional markets.
Dangote Group expects the plant to process about 700,000 barrels of crude daily and complete the project by 2030. Its projected cost has been placed at between $15 billion and $16 billion, equivalent to approximately Sh2 trillion.
Lamu Port gets central role
The project could substantially increase activity at Lamu Port, which currently handles considerably less cargo than Kenya’s main port in Mombasa.
KPA expects Lamu to support the refinery’s marine operations, receive crude oil tankers and handle vessels transporting refined petroleum products.
Captain Ruto said the port was prepared to manage present and future cargo volumes while maintaining efficient vessel turnaround and cargo-handling operations.
The refinery will, however, require additional infrastructure, including crude oil storage terminals and marine loading facilities.
Plans under the wider LAPSSET project provide for terminals capable of storing between one million and 1.5 million barrels and facilities for handling large petroleum vessels, but much of that infrastructure has yet to be built.
Major engineering contract awarded
Engineers India Limited has secured a contract worth more than $450 million, approximately Sh58 billion, to provide project management and engineering, procurement and construction management services for the refinery.
The Indian state-owned company performed a similar role in the development of Dangote’s refinery in Lagos, Nigeria.
The proposed Kenyan facility will have a larger stated capacity than the Nigerian plant’s original 650,000 barrels per day.
Questions remain over crude and financing
Despite the arrival of equipment, the project faces significant questions over financing, crude supply and environmental approval.
Kenya’s Lokichar fields are not yet producing oil commercially, while potential supply from Uganda and South Sudan would require dependable cross-border infrastructure.
This could force the refinery to rely heavily on crude imported by sea during its initial operations.
Environmental organisations have also raised concerns about possible effects on marine ecosystems and Lamu Old Town, a UNESCO World Heritage site located about 10 kilometres from the port.
