Aliko Dangote is seeking to expand his footprint in East Africa’s oil industry through a proposed $1.5 billion investment in Kenya’s petroleum pipeline infrastructure.
The Nigerian billionaire’s latest move follows his acquisition of a 25 per cent interest in Kenya Pipeline Company (KPC), after purchasing 4.5 billion shares for 42.5 billion Kenyan shillings, equivalent to about $327.4 million, on October 19.
KPC operates a pipeline system stretching approximately 1,300 kilometres, connecting Kenya’s coastal petroleum facilities with inland distribution points and markets in neighbouring countries.
Dangote discussed the share acquisition at the Financial Times Africa Summit in London, where he highlighted its relevance to the distribution of petroleum products, according to reports by Bloomberg and Reuters cited by Business Day.
The proposed pipeline investment forms part of his wider plans for Kenya’s energy sector, which also include a $16 billion refinery project in Lamu with a projected processing capacity of 700,000 barrels of crude oil per day.
The additional infrastructure could improve the movement of fuel from coastal facilities to consumers across East Africa. However, the proposed expansion’s financing, construction schedule and specific project details have not been announced.
