Kenya in Talks with Dangote Group for $20B Lamu-Turkana Crude Pipeline
The Kenyan government is negotiating with Nigerian conglomerate Dangote Group to construct an 800-kilometer crude oil pipeline connecting the Turkana oil fields to the coastal city of Lamu, President William Ruto announced Tuesday.
The proposed pipeline is a critical component of a massive 2.59 trillion Kenyan shilling ($20 billion) energy complex designed to unlock Kenya's domestic oil potential and process crude locally.
Speaking during a media engagement at the State Lodge in Kisumu, President Ruto confirmed that the pipeline project would directly support a planned crude oil refinery in Lamu.
"As part of that project of the refinery in Lamu, we are discussing with Dangote the construction of a pipeline to Turkana. Also, this will enable us to unlock the oil that we have in Turkana," Ruto said.
The pipeline will transport waxy crude produced in Turkana County’s South Lokichar Basin to the coast.
Groundbreaking for the integrated refinery complex is scheduled for Sept. 30, with full pipeline and commercial operations targeted for 2030.
The facility is projected to process 700,000 barrels of crude oil per day, serving petroleum markets across East Africa.
To meet operational capacity, Kenya plans to pool regional crude supplies from local fields, South Sudan, and Uganda.
The Kenyan government has allocated 21.5 billion shillings ($165 million) in seed equity and invited neighboring states to purchase up to a 30% combined stake in the project.
Industry analysts have expressed caution regarding supply chain logistics.
According to analysts, Uganda’s crude is already committed to flow via Tanzania through the East African Crude Oil Pipeline, while South Sudan exports primarily pass through Sudan, creating potential supply constraints for the ambitious Lamu project.
To support the massive industrial infrastructure, negotiations are also underway to build a 1,000-megawatt liquefied natural gas power plant at Lamu Port, utilizing gas supplied from Tanzania.
The pipeline and refinery form part of the broader Lamu Port-South Sudan-Ethiopia Transport corridor.
Dangote Industries Limited serves as the chief developer, with technical oversight led by Engineers India Limited and development financing managed alongside Afreximbank.
The announcement comes just months after Kenya launched a record $825 million IPO for Kenya Pipeline, with Uganda securing a significant stake and board representation.