Aliko Dangote, president of the Dangote Industries Limited (DIL), says his company has acquired a 25 percent stake in the Kenya Pipeline Company to facilitate the movement of petroleum products.
Dangote announced the deal on Wednesday at the Financial
Times Africa Summit in London, according to Reuters.
“We bought 25 per cent of their pipeline network for the
distribution of petroleum products,” the industrialist said.
The deal is valued at approximately $327 million, according
to Bloomberg.
The acquisition comes as the Nigerian billionaire expands
his energy investments across Africa, following plans to build a
700,000-barrel-per-day refinery in Kenya’s Lamu port.
On September 30, Dangote launched a 700,000-barrel-per-day
refinery project in Lamu, with the mogul and Kenyan President William Ruto
breaking ground at the site of the proposed $16 billion refinery.
The businessman had said the project, conceived to replicate
the Nigerian refinery, would be commissioned within 40 months.
“We will come back here and commission this refinery in 40
months from today. The East African refinery is designed to process
approximately 700,000 barrels of crude per day, it will also generate 1,000
megawatts, twice that of Lagos,” he said.
“We have 1 million tons of polypropylene and we also have a
base oil production that we’ll supply and also we will supply at least 20
percent of jet fuel consumed by Europe and the UK, like what we did during this
crisis.”
On Tuesday, William Ruto, president of Kenya, said private
investors had acquired a 25 percent stake in the country’s pipeline network
from public entities but did not identify the buyers.
Earlier this year, the Kenyan government sold a 65 percent
stake in Kenya Pipeline Company through an initial public offering (IPO), its
first major share sale in two decades.
The sale was part of efforts to raise government revenue
amid limited fiscal space.
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