OGEJOURNAL Menu

Dangote Plans Undersea Pipeline to Supply Fuel to Ghana, Togo

Dangote Group is planning to expand its petroleum distribution network in West Africa through a proposed undersea pipeline that will transport refined petroleum products from Nigeria to Togo and Ghana.

The project, expected to begin construction in 2028, will connect the 650,000-barrel-per-day Dangote Petroleum Refinery in Lekki, Lagos, to key markets along the West African coastline.

According to reports, the proposed pipeline will start from the refinery in Ibeju-Lekki, pass through Apapa and extend offshore through waters near Seme, along the Benin border, before reaching Lomé in Togo and eventually Takoradi or Tema in Ghana.

The infrastructure is expected to provide a direct route for transporting petrol and other refined products to neighbouring countries, potentially strengthening Nigeria’s position as a regional petroleum supplier.

The project could also increase competition for Lomé, which currently serves as an important trading and storage centre for petroleum products in West Africa.

The proposed pipeline forms part of Dangote’s wider ambition to establish a continental petroleum infrastructure network and reduce Africa’s dependence on imported refined fuels.

Expanding Across Africa

Beyond West Africa, Dangote Group is pursuing several energy infrastructure investments across the continent, including projects in East Africa.

In Kenya, plans are underway to revive a proposed 892-kilometre crude oil pipeline linking the Turkana oil fields to Lamu on the Indian Ocean coast. The project is expected to supply crude oil to a planned 700,000-barrel-per-day refinery that Dangote intends to develop in the coastal region.

The pipeline was originally designed to transport between 80,000 and 120,000 barrels of crude oil daily, with its construction cost estimated at $1.1 billion in 2018.

However, the project was suspended after difficulties surrounding the development of the oil fields and financing challenges.

Kenyan oil producer Gulf Energy, which acquired Tullow Oil’s Kenyan assets for at least $120 million last year, plans to commence production on December 1, 2026. Initial output is expected to reach approximately 20,000 barrels per day, with crude transported by trucks to Mombasa until the pipeline is completed.

Dangote has also agreed to support a $660 million fuel pipeline linking Djibouti and Ethiopia. In October, his group acquired a 24.76 per cent stake in Kenya Pipeline.

Additionally, the group has proposed a 2,650-kilometre refined petroleum products pipeline connecting Namibia, Botswana and South Africa, estimated to cost $3.5 billion.

$50bn Continental Investment Plan

These projects are part of Dangote Group’s proposed $50 billion investment programme between 2026 and 2030, covering refining, petroleum transportation, storage and distribution infrastructure.

The planned refinery in Kenya is estimated to cost $16 billion, with Dangote targeting completion within 40 months. He has also proposed offering East African governments a combined 30 per cent ownership stake in the project.