Dangote Industries is negotiating with the Kenyan government to build a 1,000-megawatt liquefied natural gas (LNG) power plant in Lamu, linked to its proposed refinery project, according to The Africa Report. The facility would be one of the largest gas-fired power plants in East Africa and could reshape Kenya's energy landscape.
Kenya Pushes for Larger Power Plant
The initial plan was for a significantly smaller facility, but Kenyan authorities are seeking a larger installation to address electricity shortages, improve industrial power supply, and reduce energy costs. The project would use LNG to provide more consistent electricity, complementing Kenya's growing investments in renewable energy.
The proposed power plant would form part of a wider energy hub at Lamu, integrating power generation with Dangote's planned refinery and associated infrastructure. This integration could benefit from shared infrastructure, including port facilities, transmission networks, and other supporting systems.
Gas Supply from Tanzania
A key part of the proposal is securing a reliable gas supply from Tanzania, which has significant natural gas reserves, including offshore resources. The gas could reach the Lamu facility through a pipeline linking the two countries or by LNG shipments transported by tankers to a receiving terminal at the site.
Such an arrangement could establish a new regional gas-trading corridor between Tanzania and Kenya while providing fuel for the proposed power plant. However, the project would depend on the successful conclusion of a gas purchase agreement between the two countries.
Dangote Expands East African Ambitions
The proposed Kenyan project underscores Dangote's ambition to extend its industrial operations beyond Nigeria after completing its landmark $16 billion refinery project in Lagos. The Dangote refinery, one of the world's largest single-train refineries, has significantly expanded the businessman's presence in Africa's energy sector.
The Lamu project could similarly position Dangote Industries as a major player in Kenya's energy and industrial development. By combining the refinery and power facilities, the company could also benefit from shared infrastructure, including port facilities, transmission networks, and other supporting systems.
Lamu Project Could Transform Energy Trade
The proposed 1,000MW facility is expected to support Kenya's efforts to diversify its electricity mix and reduce exposure to fluctuations in hydropower output, particularly during periods of drought. The project is also strategically located within the broader Lamu Port-South Sudan-Ethiopia Transport corridor, designed to improve trade and transport links across northern Kenya and neighbouring countries.
Before construction can begin, Dangote and the Kenyan government will need to conclude technical discussions, including agreements covering gas supply and electricity purchases, while completing required environmental assessments. A final investment decision is expected after the negotiations and technical evaluations are concluded.
Legit.ng previously reported that Aliko Dangote's plan to build a 700,000-barrel-per-day refinery in Lamu, Kenya, is facing fresh challenges, particularly over crude supply in a country that currently has no commercial-scale oil production. The proposed project comes less than three years after Dangote launched Africa's largest refinery in Nigeria, despite difficulties including rising construction costs, challenging terrain, and poor infrastructure.
