Uganda backs Dangote's 650 kb/d regional oil refinery in East Africa

Ugandan President has expressed his support for the construction of a proposed regional oil refinery valued at USD17bn, aimed at strengthening industrialisation and energy security in East Africa (Ugandan government statement, 17/05/2026). According to the statement, the President made these remarks during a meeting with visiting Nigerian industrialist Aliko Dangote, the project's proponent. He stated that the refinery would contribute to broader efforts to advance regional integration, value addition, and industrial development across Africa.

The proposed refinery is estimated to cost between USD15bn and USD17bn, with a designed processing capacity of 650 kb/d of crude oil. The facility is intended to supply Uganda, Kenya, Tanzania, Ethiopia, South Sudan, the Democratic Republic of the Congo, and other regional markets.

Dangote noted that consultations with governments in the region are ongoing, and several sites, including Tanga, Mombasa, and Lamu, are being considered for the project. "This is a continuation of discussions we held with regional leaders in Nairobi (Kenya). We want to establish a refinery that can support East Africa's growing energy needs," Dangote said.

This regional initiative comes as Uganda prepares for its first oil production from the Lake Albert crude development, expected to begin at the end of July 2026. The Lake Albert project is projected to reach a plateau production of 230 kb/d within two years of first oil, with plans to sustain this level for five to six years. The country plans to export its first crude oil by the end of October 2026, through the 1,443 km-long, 216 kb/d East African Crude Oil Pipeline (EACOP) to the port of Tanga, in Tanzania. Uganda is also planning a 60 kb/d refinery worth USD4bn, to be supplied by the Lake Albert fields (KEI, 16/04/2026).