Kenya is in talks with Nigerian businessman Aliko Dangote over plans to build a crude oil pipeline linking Turkana to Lamu as the government seeks to unlock the country’s oil resources.
President William Ruto said the proposed pipeline is being discussed as part of Dangote’s planned refinery project in Lamu.
Ruto made the remarks on Monday, September 14, during a media engagement at the State Lodge in Kisumu.
“As part of that project of the refinery in Lamu, we are discussing with Dangote the construction of a pipeline to Turkana for us to be able to unlock the oil that we have in Turkana,” Ruto said.
The President also announced that construction of the planned refinery is expected to be launched on September 30, with Dangote and other heads of state expected to attend the groundbreaking ceremony.
Pipeline to link Turkana oil to Lamu
The proposed pipeline would provide a direct link between oil fields in Turkana and the Kenyan coast, allowing crude oil produced in the region to be transported to Lamu for processing.
The plan comes as Dangote prepares to invest Ksh2.59 trillion ($20 billion) in a refinery at Lamu.
The refinery is expected to have a processing capacity of 700,000 barrels of crude oil per day once completed in 2030.
The facility is expected to serve petroleum markets in Kenya and other parts of East Africa.
However, securing enough crude to keep such a large refinery operating remains one of the key issues surrounding the project.
President Ruto’s economic adviser David Ndii has previously estimated that East Africa could provide more than 600,000 barrels of crude oil per day, including about 350,000 barrels from South Sudan, 250,000 barrels from Uganda and 120,000 barrels from Kenya.
Getting the crude to Lamu, however, could prove challenging.
Uganda’s crude is expected to be transported through Tanzania under the East African Crude Oil Pipeline, while South Sudan’s oil exports currently pass through Sudan.
LNG plant also planned for Lamu
The refinery is expected to be accompanied by other energy projects, including a proposed 1,000-megawatt liquefied natural gas (LNG) power plant.
The plant would provide electricity for industrial activities around the refinery and is expected to give the project a more reliable source of power.
Kenya is also discussing with Dangote Industries the possibility of developing the LNG plant at the planned 1,000MW capacity.
The gas could be supplied from Tanzania, with the two sides considering options that include a pipeline connection between Tanzania and Kenya or transporting LNG by tanker to a receiving facility at Lamu.
The planned refinery and related projects form part of the wider developments around the Lamu Port-South Sudan-Ethiopia Transport (LAPSSET) corridor.
If the pipeline and other planned infrastructure are developed, the government expects the projects to help unlock Kenya’s oil resources while positioning Lamu as a major energy and industrial hub in the region.
The proposed refinery, pipeline and power plant would also add to the wider investments planned around Lamu under the LAPSSET corridor.