Nairobi — Nigerian billionaire Aliko Dangote is considering building a proposed 650,000 barrels-per-day oil refinery in Mombasa instead of Tanzania's Tanga port, according to Reuters reporting citing the Financial Times.

The refinery project is estimated to cost between $15 billion and $17 billion and would rank among the largest private energy investments in Africa.

Reuters reported that Dangote is leaning toward Mombasa because of its deeper port, stronger petroleum infrastructure and larger regional fuel market.

"I'm leaning more towards Mombasa because Mombasa has a much larger, deeper port," Reuters quoted Dangote as saying.

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The final decision is expected after further discussions with President William Ruto.

The refinery proposal emerged during discussions at the Africa We Build Summit held in Nairobi last month, where East African leaders explored the idea of a regional refinery project aimed at reducing reliance on imported fuel.

The plan initially focused on Tanzania's Tanga port and involved crude supplies from Kenya, Uganda, South Sudan and the Democratic Republic of Congo.

However, the latest developments suggest Kenya and Tanzania are now competing to host the project as both countries seek to strengthen their positions as regional energy and logistics hubs.

A refinery in Mombasa would build on Kenya's existing petroleum distribution network that serves Uganda, Rwanda and South Sudan through the Port of Mombasa.

If approved, the refinery could significantly reduce East Africa's dependence on refined fuel imports from the Middle East and Asia.