Why East Africa needs more refineries

NAIROBI, Kenya: EAST Africa can accommodate several petroleum refineries as demand for refined products continues to grow across the region, Kenyan President William Ruto has said.

President Ruto said refinery projects being developed by individual East African countries should be viewed as opportunities to strengthen regional trade and energy security rather than as competing investments.

He said the region would require additional refining capacity even after the proposed Aliko Dangote East Africa Petroleum Refinery in Lamu becomes operational, arguing that the regional market would be large enough to support several refineries.

Speaking during the groundbreaking ceremony for the Lamu refinery, President Ruto said Kenya would be ready to purchase petroleum products from neighbouring countries, including Uganda and Tanzania.

“If the refinery in Uganda produces oil and it can reach Busia at a lower price, we will buy oil from there and bring it to Busia. There is no problem,” he said.

President Ruto also indicated that Kenya would be prepared to source petroleum products from Tanzania once the proposed refinery in Tanga is developed.

“Even if the one in Tanga is built, we as Kenya will still go and buy some shares there. There is no problem,” he said. “For your information, we will need another refinery. This one being built in Lamu cannot supply all of us,” President Ruto said.

His remarks underline the growing case for expanding refining capacity within East Africa, where rising economic activity, industrialisation, transport demand and population growth are expected to sustain demand for petroleum products.

The comments also come as Tanzania and Uganda advance plans to develop Tanga into a regional energy hub, potentially adding refining, storage and distribution capacity to the port city’s growing role in the petroleum value chain.

Recently, the Tanzania-Uganda Joint Technical Committee handed over a proposed site at Chongoleani to Worley Consulting Group Limited to undertake preliminary studies for the planned energy hub. The studies will cover geotechnical investigations, environmental assessments and preliminary design work for infrastructure planned under the project.

The proposed development includes a refinery, a pipeline for transporting refined petroleum products from Tanga to Kampala, oil storage facilities, a marine storage terminal and a jetty at the Port of Tanga. Uganda’s Assistant Commissioner in the Ministry of Energy and Mineral Development, Engineer Geoffrey Ogwang, said the handover would enable the consultant to commence preliminary studies to assess the feasibility of the project.

“We have come to hand over the site to the consultant so that it can immediately begin the preliminary studies to assess the feasibility of implementing this major and important project for our two countries,” Eng Ogwang said.

Joint Technical Team member Engineer Aristides Katto said the studies would establish ground conditions and determine the area required for the proposed facilities.

“Following these studies, the consultant will submit a comprehensive report to the Joint Technical Team for detailed consultations and decisionmaking before construction can begin,” Eng Katto said.

The Tanga project is closely linked to the East African Crude Oil Pipeline (EACOP), which is being developed to transport Ugandan crude oil to the Chongoleani area in Tanga for export. The proposed refinery could further strengthen Tanga’s position in the regional petroleum value chain by adding crude oil refining, storage and distribution to the port’s existing and planned energy infrastructure.

President Ruto’s remarks also point to the potential for greater regional integration, with refineries in different East African countries serving neighbouring markets based on proximity, production costs and demand.

Rather than competing for the same market, the projects could create a more diversified regional supply network, reduce dependence on imported refined petroleum products and support cross-border trade.

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